National Economy Ministry submits proposal to change bank levy rules
Hungary’s National Economy Minister Mihály Varga submitted a proposal to Parliament yesterday to revise bank levy rules, effectively reducing the rate of the levy and introducing incentives for financial institutions to increase lending in the future.
For banks with total assets under HUF 50 bln, the bank levy will remain at 0.15% but for banks with assets above that amount the bank levy will be reduced from 0.53% to 0.31%. In 2017 and 2018 the bank levy will be reduced to 0.21%.
As a further measure the bank levy for individual institutions in the 2016 fiscal year will be capped at 45% of the amount they paid in 2015. In 2017 and 2018 the levy will be capped in the amount banks paid in 2016.
As an incentive the National Economy Ministry is proposing to further reduce the bank levy for banks in 2017 and 2018, practically capping it at 30% of the levy paid in 2015, if they increase their corporate lending and their lending to SMEs in 2016 through transactions and outlays.
Lenders will also be eligible for this incentive in 2017 and 2018 if they increase their retail lending to households in 2016 through outlays.
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.