T he financial stability report regularly published by the Hungarian central bank is not a document that usually makes compelling reading. But this week's, bearing the results of an assessment of the country's banks, was different.

At first glance, all seemed reassuring. If the economy performed in line with mainstream forecasts and contracted by 3.5 per cent this year - and if the exchange rate stabilised at 290 forints to the euro - banks would keep their capital ratios above 10 per cent of total assets, the report found. Comfortably higher, in other words, than the international regulators' 8 per cent minimum.