Banks to Draft Lending Recovery Plan

Banking

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The Hungarian Banking Association agreed to draft a package of measures banks can take to support the recovery of the lending market at a meeting with Minister of Economic Development Márton Nagy, his ministry said in a release on its website this week.

"The [...] minister established that the banking sector is generating windfall profits, which would justify the introduction of a bigger windfall profit tax or a new bank levy. However, at present, the economy needs this money more than the budget, so the government expects banks to make greater efforts in the interest of supporting the lending recovery," the ministry said.

Lenders should "actively participate" in state-subsidized credit programs such as the Széchenyi Card Program and the Gábor Baross Reindustrialization Credit Program for businesses, or home purchase programs for retail borrowers.

The sides agreed at the meeting that financial system players, "especially banks," are operating stably, while their liquidity, capital and operating profitability "shows a favorable picture."

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