The National Bank of Hungary published results from its October 2025 Bank Sentiment Survey, indicating that banks judged their overall operating environment to have been unchanged over the previous six months. Respondents nonetheless reported a deterioration in the macroeconomic environment, tighter regulation and lower profitability, while intensifying competition and stronger demand for banking products continued to support banks’ overall situation, and expectations for the next six months improved. In net terms, around one-fifth of responding institutions reported a deterioration in the domestic and international macro environment in 2025 Q2–Q3, while almost one-third expected improvement in 2025 Q4 and 2026 Q1, with the share close to two-thirds among large banks. Banks reported intensifying competition, particularly in household and payment services, including from non-bank players, while access to short- and long-term funding and interbank liquidity were broadly unchanged and expected to remain so. Among large banks with significant loan portfolios, 38 percent reported weaker corporate creditworthiness without a corresponding deterioration in portfolio quality, but 50 percent expected further weakening and 31 percent anticipated a potential impact on loan quality over the next six months. A significant proportion of institutions reported rising credit demand, especially in the household segment, and many expected demand to grow in both household and corporate lending over the next two quarters; regulatory tightening was felt mainly by medium-sized and small banks. Pre-impairment profitability stopped declining, operating expenses were reported to be increasing by nearly half of banks, and a net 19 percent of large banks expected profitability to increase.
National Bank of Hungary 2025-11-11
National Bank of Hungary releases Bank Sentiment Survey showing stable mid-2025 conditions and improving outlook
The National Bank of Hungary's October 2025 Bank Sentiment Survey showed banks viewed their operating environment as unchanged despite a worsening macroeconomic climate, tighter regulation, and lower profitability. Intensifying competition and stronger demand for banking products supported banks, with expectations for improvement in the next six months. Large banks noted weaker corporate creditworthiness but anticipated rising credit demand, especially in household lending, while regulatory tightening mainly affected medium-sized and small banks.