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MNB revokes DRB Bank group members' licences

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The National Bank of Hungary (MNB) has revoked the operating licences of members of the DRB Bank group, paving the way for their depositors to be compensated, the central bank's deputy governor in charge of oversight told MTI yesterday.

The central Bank's Financial Stability Council took the decision on the revocation on Monday afternoon, after a review showed the banks' assets were insufficient to cover liabilities, said László Windisch. Brokerage Buda-Cash cannot account for amounts exceeding HUF 10 bln at each of the group's members, giving them all negative net assets, he added.

The National Deposit Insurance Fund (OBA) will start compensating depositors at the group's members automatically because of the revocation, Windisch said. OBA insures depositors up to the €100,000 European Union threshold. Payments are made within 20 working days. The MNB put a limit on withdrawals from the DRB Bank members last week, after suspending the activities of Buda-Cash, which has close ties to DRB, and initiating a criminal procedure.

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