Notes to the financial statements
Forint liabilities of credit institutions HUF millions
B/S line
Description
Balance 31 Dec 2019
Current accounts O/N deposits One-week deposits Instant payment accounts VI.2.
Deposits of credit institutions
31 Dec 2020
Change
897,768
1,860,596
962,828
1,355,457
84,742
-1,270,715
0
3,049,000
3,049,000
40
90,494
90,454
2,253,265
5,084,832
2,831,567
The item ‘Deposits of credit institutions’ mainly contains the liquidity-absorbing instruments, which are pegged to the base rate and mature within one year. The balance of deposits more than doubled compared to the end-2019, amounting to HUF 5,084.8 billion on 31 December 2020. On 1 April 2020, the Monetary Council decided to introduce another instrument, the one-week deposit, which amounted to HUF 3,049 billion by the end of the year. The balance of current accounts increased by HUF 962.8 billion, of which the stock of preferential deposits was HUF 1,107.7 billion higher than at the end of 2019. The balance of the instant payment account also increased due to the launch of the instant payment system in March 2020. O/N deposits changed in the opposite direction, with the stock falling by HUF 1,270.7 billion to HUF 84.7 billion by end-2020.
4.8 N ET POSITIONS VIS-À-VIS CREDIT INSTITUTIONS HUF millions
B/S line
Description
I.2.—VI.2.
Net forint position
II.3.—VII.2.
Net foreign currency position Total
Balance 31 Dec 2019
31 Dec 2020
Change
-503,439
59,678
563,117
-35,903
-100,580
-64,677
-539,342
-40,902
498,440
Net liabilities to credit institutions decreased overall, improving this item by HUF 498.4 billion. Within this, the net forint position showed an improvement of HUF 563.1 billion, with its balance shifting from a net liability at end-2019 to a net receivable by end-2020 (see Section 4.7.). Net foreign currency liabilities to credit institutions rose HUF 64.7 billion compared to end-2019, amounting to HUF 100.6 billion on 31 December 2020. The higher balance of foreign currency deposited in interest-bearing accounts at the MNB by domestic credit institutions and the aggregate change in the balance of foreign currency swaps both worsened the foreign currency position. By contrast, the increase in credit institutions’ foreign currency deposits improved the net foreign currency position.
ANNUAL REPORT • 2020
113
