K&H Bank Fined for Irregularities
The National Bank of Hungary (MNB) on Friday said it fined K&H Bank HUF 48 million for shortcomings and violations affecting the lender's sales of government securities, the recording of communication with customers as well as complaint management and data reporting, according to a report by state news wire MTI.
MNB noted that the problems it revealed do not threaten the bank's reliable operation but their correction is essential. It set deadlines for K&H Bank to correct the shortcomings.
The central bank found that K&H Bank sold retail government securities in its own account sales on the secondary market at a significantly higher price than its primary price quotes.
As a result, customers buying these securities on the secondary market were at a disadvantage compared to subscribing to them at the bank or purchasing them at the treasury.
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