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.

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

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.