MKB will establish mortgage bank
State-owned MKB Bank will establish its own mortgage bank together with Granit Bank as a minority owner, the application of which has already been submitted to the National Bank of Hungary, the lender said yesterday, according to Hungarian news agency MTI.
MKB not only wants to comply with financial regulations by establishing a mortgage bank, it also sees it as a strategic opportunity, the bank noted.
MKB chairman-CEO ĂdĂĄm Balog has said in the past that due to economies of scale not every commercial lender could have a mortgage bank and MKB was ready to cooperate with other players.
MNB announced in June 2015 that it will require lenders to back at least 15% of their net mortgage loans with long-term liabilities from October 1, 2016.
Previously only OTP, UniCredit and FHB had mortgage banks in Hungary, but since the MNBâs announcement, Erste Bank has also set up its own mortgage bank and K&H Bank said it will do the same.
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