Gains in the Swiss franc, a new bank levy, and a delay in foreclosures and evictions are having a negative impact on banks' income-generating capacity that risked slowing the pace of the recovery in Hungary, the National Bank of Hungary has said.

In its Financial Stability Report, released on Wednesday, the central bank said a depreciation of the forint against the Swiss franc, uncertainty caused by a windfall levy on banks and continued weakness in the banking sector's capacity to lend had