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Central bank revokes license of NHB Bank

Taking into consideration the interests of the bankʼs customers, the National Bank of Hungary (MNB) is revoking the license of NHB Growth Credit Bank and ordering the liquidation of the bank, state news wire MTI reported Friday citing an MNB statement.

The MNB made its decision as NHB Bank has not been able to sufficiently and permanently improve its liquidity, adding that it has made no relevant steps to overhaul its business model or improve its solvency that would ensure its long-term survival.

Last December, the central bank ordered restrictions on withdrawals of over HUF 7 million from accounts at NHB Bank after the lenderʼs liquidity position "deteriorated significantly." It said that NHB Bankʼs liquidity coverage ratio had fallen under the 100% threshold even in the short term, justifying intervention. 

Previously, the MNB fined NHB Bank some HUF 19 mln in August 2018 for failing to fully comply with regulations on enterprise management, risk management, accounting, data provision, IT systems, and the prevention of money laundering and the financing of terrorism.

The central bank stressed that the problems at NHB Bank do not threaten the stability of Hungaryʼs financial intermediary system as the bankʼs total assets account for just 0.2% of the sectorʼs total.

NHB Growth Credit Bank is owned by Tamás Szemerey, a cousin of MNB Governor György Matolcsy, MTI noted.