Banks examining new mortgage lending requirement
A number of Hungarian banks are still weighing steps needed to comply with new regulations requiring them to back mortgage loans with more long-term liabilities, according to Hungarian news agency MTI.
The National Bank of Hungary (MNB) is requiring lenders to back at least 15% of their net mortgage loans with long-term liabilities from October 1, 2016. The new requirement is expected to spur the establishment of more mortgage banks in Hungary.
At present, there are only four Hungarian lenders with mortgage units, OTP, Unicredit and FHB, but Erste has recently announced it is also establishing its own mortgage bank. In response to a query by MTI, CIB Bank said it does not plan on setting up a mortgage bank for the time being, but is considering an alternative solution to comply with the new regulation.
State-owned Budapest Bank told MTI that it is still reviewing the matter. K&H Bank said it had not yet made a decision on the establishment of a mortgage bank.
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