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

History

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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