Are you sure?

GVH reduces fines on banks for cartel activity

The Hungarian Competition Authority (GVH) on Wednesday said it is fining eight banks in Hungary a total of nearly HUF 5 billion for cartel activity during an early payback scheme for borrowers with foreign currency-denominated loans in 2011-2012.   

The GVH made the decision in a repeated procedure after the Kúria, Hungaryʼs Supreme Court, instructed it to review its original case in which it imposed a total of HUF 9.5 bln in fines in 2013.

The GVH said on Wednesday that it took the Kúriaʼs guidance into account when recalculating the amount of the fines. In the old equation, this was based on the total proceeds realized on the total mortgage portfolio, while the new calculation was based on the proportion that fell within the timeframe of the infringement.

The GVH duly reduced the fine on OTP Bank from HUF 3.922 bln to HUF 1.435 bln; on Erste Bank Hungary from HUF 1.725 bln to HUF 900 mln; on K&H Bank from HUF 983.3 mln to HUF 780 mln; and on CIB Bank from HUF 835.4 mln to HUF 460 mln.

The fine on MKB Bank was lowered from HUF 783 mln to HUF 405 mln; on Raiffeisen Bank from HUF 583.6 mln to HUF 465 mln; on UniCredit Bank Hungary from HUF 306.3 mln to HUF 185 mln; and on Budapest Bank from HUF 283.5 mln to HUF 275 mln.