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MNB doubles down on Revolut position

Fintech

The National Bank of Hungary (MNB) on Tuesday reiterated its stand on fintech company Revolut's cross-border banking services in Hungary, according to a report by state news wire MTI.

"In the interest of defending clients, the MNB resolutely maintains its position that Revolut Bank should conduct its activities in Hungary as a subsidiary, with a local HQ and capitalization, and as an institution under the oversight of the Hungarian central bank," the central bank said.

"In spite of a number of prompts by the MNB, Revolut Bank has still not started the licensing procedure for a local subsidiary," it added.

MNB initially pressed for Revolut Bank to operate as a local unit in a position published in September.

The central bank and market regulator warned Hungarian Revolut Bank clients that legal recourse regarding their accounts would be available to them only in Lithuania, and only in the Lithuanian or English languages.

MNB noted on Tuesday that "several hundred thousand" Hungarians are clients of Revolut Bank.

"The MNB has always supported the strengthening of competition on domestic financial markets as it encourages market players to innovate, make developments, improve efficiency and even cut costs, while offering clients higher-quality, simpler, and faster service. However, these processes may not work against the interests of Hungarian clients which take priority in any circumstances," it said.

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