OTP Group receives HUF 55 mln fine

MNB

jessica fejos

Hungary’s OTP Group received a fine of HUF 55 million by the National Bank of Hungary (MNB) on charges of a number of violations the central bank uncovered in a comprehensive review.

According to the central bank’s probe OTP Bank broke rules on credit evaluation of clients, data provisions, collateral appraisal, keeping internal rules on investments up to date, calculating group-level capitalization, calculating exposure to non-performing loans and IT security, Hungarian news agency MTI reported yesterday. 

"The problems discovered do not pose any risk to the bank’s future operation," MNB said. The central bank fined the lender HUF 42 million and instructed it to discontinue the practices.  

The MNB also fined OTP Mortgage Bank an additional HUF 1 mln on charges of data provision shortfalls, OTP Faktoring HUF 1.5 mln on charges of deficiencies assessing collateral and related to IT security, OTP Ingatlanlízing HUF 5 mln on charges of credit evaluation and data provision errors and Merkantil Bank HUF 5 mln on charges of risk management accounting and IT deficits, MTI reported.

OTP Bank said late yesterday it acknowledges the decision following the MNB’s comprehensive review, adding that the group members concerned have cooperated with the oversight authority during and since the audit and naturally agree to remedy the shortcomings within the deadline stipulated by the MNB, according to MTI.

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