Bank group: Bank tax prevents growth

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The extra burdens on Hungaryʼs banking sector are restricting the sustainable growth of the whole economy, the head of the Hungarian Banking Association said at the bodyʼs annual general meeting on Friday.

Cost of capital exceeds return on equity, Mihály Patai said in a statement issued by the association. He said the banking sector was going through its own "seven lean years", adding that development was expected to be slow and the sectorʼs consolidation "not free from obstruction".

The joint aim of the banking sector and the government is an economic boost that a competitive banking sector can support through lending, Patai said. Levente Kovács, the associationʼs chief secretary, said the operating costs of Hungaryʼs banking sector were unmatched in international comparison. The banking sector must be freed of its extra burdens for the sustainable economic growth of the country, he added.

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