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Turkey’s banking risks, boom time in Hungary

Turkey’s financial markets have rebounded in recent days, partly because fears of a US-Iran war have eased but also because local banks have sounded more bullish on their own performance this year. But long-standing vulnerabilities in the banking sector continue to linger. Meanwhile, this week provided further evidence that Hungary’s economy continued to motor along at the end of last year. Loose policy will cushion the blow to the economy from ongoing weakness in the euro-zone over 2020, albeit at the cost of worsening economic imbalances.

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