Hungary central bank says banking system stable, but housing market risks rose

Hungary's banking system maintained a strong capital position in 2025, but housing market risks increased due to a subsidized mortgage programme and rising loan-to-value ratios.

Hungary's ​banking ‌system continued to ​be characterised by ‌a strong capital position in 2025 and the ratio of ‌non-performing loans fell ‌to a historically low level, the National Bank of ⁠Hungary ​said ⁠in its financial stability report.

At ⁠the same time, housing ​market risks have increased. ⁠Since the start of a ⁠subsidized ​mortgage programme last September, the average loan-to-value ⁠ratio of borrowers increased ⁠considerably and ⁠housing market overvaluation also increased, they ‌said.