Hungarian Commercial Bank of Pest 21-32. (Budapest, 1931)
No. 22, August 1928
Budapest, August 1928. General economic conditions in Hungary during the last three months have remained fair and have markedly improved during the month of July. The money market has been easy for short term credits, although rates have somewhat risen in consequence of rising terms in New York and in harmony with the general Western- European market, especially the stiffening German rates. The recent stabilization of the French Franc did not allow the French money market yet to influence conditions in Hungary. It is however expected that in no long a time the low rates in France will exercise their influence towards lowering money rates in Central-Europe as well. The discount-rate of the National Bank of Hungary remained stable at 6% having not changed since 1926. During this remarkably long period of unchanged bankrate, the amount of bills discounted with the National Bank has increased by 36% only, the amount of loans on securities which was a trifle of some 20.000'— Pengő in 1926, has not increased, but has decreased to 15.000'— Pengő in 1927. The amount of bills discounted in the last two years by 600 Hungarian banks has increased by about 50%, this increase being chiefly due to the recovery of business after the stabilization and activation of the League of Nations reconstruction scheme. From 1925 to end of 1927 62 Budapest banks have increased their capital from 187'8 million Pengő to 253'5 million Pengő and their open reserves from 132'2 million to 173-2 million Pengő, their deposits increasing from 378'3 3 1 Money. Banks.