Breaking News

Tweet TWEET

OTP Bank Falls Second Day on IMF’s European Bank Asset Warning

OTP Bank Nyrt. (OTP), Hungary’s largest lender, fell for a second day as European stocks retreated after the International Monetary Fund said the region’s banks may need to sell assets.

The shares fell 0.2 percent to 4,070 forint by 11:18 a.m. in Budapest. The benchmark BUX stock index was little changed at 18,866.21.

The IMF said European banks may need to sell as much as $4.5 trillion in assets through 2013 if policy makers fall short of pledges to stem the fiscal crisis. The projection is 18 percent higher than its April estimate. The IMF made the comments in its Global Financial Stability Report released today.

“Hardly inspiring news for Emerging Europe as it struggles with the already weak European growth environment,” Timothy Ash, a London-based economist at Standard Bank Group Ltd., wrote in e-mailed comments today. “Maybe this will inspire a fresh round of concern over European bank deleveraging across the region.”

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.