MNB publishes guidelines for banks on application of 'fair banking'

Competition

The National Bank of Hungary (MNB) published guidelines on the main principles it expects banks to follow when applying the recently approved law on "fair banks", which locks in interest rates for loans under three years and requires lenders to use an indicator, approved by the MNB, to calculate rate changes for loans with longer terms, Hungarian news agency MTI reported today.

The guidelines specifically refer to an indicator on interest changes and another on interest spread changes, which must be prepared by banks, and the lawfulness of their practices must be reviewed by the central bank.

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.

Support the BBJ

Startups