MNB: Market impact of brokerage scandals limited, temporary
Recent scandals at independent Hungarian brokerages have had a temporary and limited impact on the investment service provider market, the National Bank of Hungary (MNB) reported today.
"Although the broker cases adversely affected the market of investment service providers, the negative impact, for the time being, can be considered temporary, and no significant divestiture occurred in the sector," the MNB said in its quarterly Inflation Report.
"The brokerage cases did not significantly influence the investment behavior of corporations, while the brokerage cases may have only moderately affected the investment decisions of households," it added.
The MNB said there were no signs of "panic-driven withdrawals" of funds from brokerages, however, it noted that household savings were undergoing a modest restructuring in the direction of investments and investment service providers "deemed safer".
The Quaestor, Buda-Cash and Hungaria ÉrtÉkpapír brokerages all failed early in the year. DRB Banking Group, which had close ties to Buda-Cash, also went bust.
Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%
Bulgaria's Household Income, Spending Rise 20% in 2023
Spar Magyarország Revenue Climbs Close to 16% in 2023
Hungary Launches HUF 15 bln Tourism Sector Support Program
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.
