Erste Bank establishes mortgage bank in Hungary

MNB

Erste Bank Hungary yesterday reportedly announced that it has established its own mortgage bank in the country, Hungarian news agency MTI reported early this morning.

According to the news agency, the mortgage bankʼs company charter was signed, but the unit still requires the approval of the National Bank of Hungary (MNB).

Hungary’s central bank requires lenders to back at least 15% of their net mortgage loans with long-term liabilities as of October 1, 2016, which according to MTI, is Erste Bank Hungaryʼs motivation for the change.

Previously, the only lenders in Hungary with mortgage banks were OTP, Unicredit and FHB. Erste is the first to establish its own mortgage bank since the MNB announced the regulatory changes to mortgage lending, the news agency noted.

Erste Bank Hungary said it expected to submit its application for the mortgage bank to the MNB this week, responding a question by MTI.

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