Erste Bank Hungary to cease cooperation with loan brokers
Erste Bank Hungary will cease its cooperation with loan brokers from October 1 because of the unfavorable economic and regulatory environment, but it will not pull out of Hungary, the lender told MTI on Friday, confirming a report in Napi Online.
The bank's lending products will only be available at Erste Bank Hungary branches from October.
Erste Group's management have confirmed their intention to continue the bank's activity as a defining and capital-strong player on the domestic banking market, Erste Bank Hungary said. The bank also wants to maintain its strategic ties to Magyar Posta, Vienna Insurance Group and ING Biztosító, it added.
"We will not allow such an adversarial economic policy -- that causes Hungary serious harm -- to drive us out," Erste Group chairman-CEO Andreas Treichl said in an exclusive interview with Napi Online.
Hungary's government is making banks shoulder the costs of an early repayment scheme for foreign currency-denominated loans at a discounted exchange rate.
Treichl warned that the measures by the government could cause investors to take their business to the Czech Republic, Romania or Slovakia for the short term.
He said Erste Group would not invest resources earmarked for business development in Hungary. It will, however, ensure sufficient capital for capital adequacy and liquidity to its Hungarian unit, he added.
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