No ‘really big’ bank will withdraw from Hungary, say CEOs

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No "really big" bank will pull out of Hungary because of government measures that have added to the burden of lenders, bank CEOs said at a conference on Wednesday.

Hungarian banks have had to pay a bank levy since 2010 and the government recently introduced an early foreign currency-denominated mortgage repayment scheme that requires banks to shoulder the cost of a discounted exchange rate.

András Kozma, chairman-CEO of Commerzbank, said the question was how long foreign owners of Hungarian banks would tolerate the reduced business activity.

László Balázs, chairman-CEO of Magyarországi Volksbank, said the early FX repayment scheme could affect about 70% of operating profit of the banking sector.

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