Hungarian banking situation “sensitive issue” in Austria
The situation of Hungarian banks is a sensitive issue in Austria, Ewald Nowotny, the governor of the country’s central bank, said in an interview in business daily Napi Gazdaság today. Speaking about a possible withdrawal of Austrian banks from Hungary, Nowotny said it was in the interest of both sides to avoid making hasty decisions and to think with a long-term perspective.
He noted that Hungarian banks had recently been forced to write down big losses, however. Considering how long they are prepared to operate on a market in which profit is not being generated is an absolutely rational question of doing business, he added.
“I hope that there is no pressure on Austrian banks to massively scale back their Hungarian units,” Nowotny said. “In any case, they have to consider which banking activities are worth undertaking on the Hungarian market in the long term…
“Naturally, Hungary is not indifferent to how certain situations turn out, because they can also have a negative effect on the Hungarian economy,” he added.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.