Economic Development Ministry Responds to Banking Concerns
Image by Shutterstock.com
The Ministry of Economic Development issued a statement on its website Friday responding to the Hungarian Banking Association's negative assessment of government measures that would incentivize lenders and households to buy more government securities.
The banking association had argued that extending the windfall profit tax on lenders to 2024 while allowing lower payments in exchange for buying more government securities would reduce banking sector liquidity and cut outlays for corporate investments.
The ministry said the measures aimed to boost demand for government securities and strengthen the financial know-how of citizens. It also pointed to the need for incentives and support to preserve the real value of household savings.
The ministry said the local banking sector's 72% loan-to-deposit ratio was "low" and allowed banks "significant room" to lend further. It added that lenders had over HUF 7 tln in short-term central bank facilities.
The windfall profit tax poses no threat to the banking sector's "strong" capital and liquidity position or its "high-level capacity" to lend, the ministry said.
Hungary CPI Drop Acknowledged at IMF/World Bank Spring Meeti...
Gov't Considering Fuel Price Intervention
AI may Save Hungarian Healthcare, Says Leading Doctor
Time Out Market to Open in Budapest Next Year
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.
