Preparations for settlement of borrowers' refunds on schedule

Deals

Preparations for the Hungarian banking sector's biggest challenge this year, the settlement of refunds mandated under borrowers' relief legislation, are "progressing at a good pace", the head of the Hungarian Banking Association told Hungarian news agency MTI in an interview.

Mihály Patai said banks would meet the deadlines in legislation on the settlement as well as on the conversion of retail forex loans and on the introduction of fair banking practices. After the tasks related to the legislation are completed, Hungary's banking sector can finally return to normal operation with regard to retail lending, and that is the most important thing, he added.

He said the country's banking sector was undergoing a significant reorganization, noting changes in ownership and the exit of six smaller players from the market.

Revenues are down and costs have risen, mainly as the result of government measures, such as the bank levy and the duty on financial transactions, he said. In future, only those banks will remain viable in Hungary that can adjust their business models to new market expectations and owner strategies, he added.

Patai said it could be seen as a sign of progress that the gradual phasing out of the bank levy had been put on the agenda at government level. He added that it was justified to tie the process to a pick up in economic growth.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried 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.