ADVERTISEMENT

Matolcsy: Banks stepping stone for economic growth

History

If Hungary is to move toward long-term economic growth, banks, the private sector and the state must find a way to cooperate, National Bank of Hungary (MNB) Governor György Matolcsy told weekly Heti Válasz in an interview published today.

“The banking system could act as a stepping stone for the economy, while a partnership with the state and the private sector, could give momentum to modernization in Hungary,” Matolcsy told the paper.

During his tenure as Minister of National Economy between 2010 and 2013, Matolcsy was instrumental in introducing the bank levy in Hungary in 2010, according to reports. Matolcsy acknowledged, however, that the profitability of the banking sector was an issue that needed to be addressed, according to the paper.

“A 10-12% return on equity would be ideal, but we are far from this at the moment,” he told Heti Válasz, adding that this is the first time in years that banks will be profitable at a sector level. This was a motivating factor in the government’s decision to reduce the bank levy, according to Matolcsy, who said he would support even greater reductions if banks committed to increased lending, the paper reported.

“We must also restructure the thinking and the operation of the banking system,” he was quoted as saying. Matolcsy placed the blame for weak lending activities on bank’s lending policies and not on the sector’s liquidity, according to the paper.

ADVERTISEMENT

IMF raises Hungary 2021 GDP growth forecast to 7.6% Analysis

IMF raises Hungary 2021 GDP growth forecast to 7.6%

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.