MNB orders withdrawal restrictions at NHB Growth Credit Bank
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The National Bank of Hungary (MNB) on Tuesday said it ordered restrictions on withdrawals of over HUF 7 million from accounts at NHB Growth Credit Bank – owned by Tamás Szemerey, a cousin of MNB Governor György Matolcsy – for a period of 30 days after the lenderʼs liquidity position "deteriorated significantly," according to state news wire MTI.
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The MNB said NHBʼs liquidity coverage ratio had fallen under the 100% threshold even for the short term, justifying intervention.
The MNB placed an oversight commissioner at NHB to ensure compliance with the restrictions and instructed the bank to take measures to correct the situation. It ordered the bank to close on Tuesday to smooth out the technical implication of those measures. The bank will open its doors again on Wednesday.
MNB noted that the withdrawal restrictions apply to 67 private individuals and 88 companies who have accounts at the bank. Among them are ten private individuals and 42 companies whose account balances exceed the EUR 100,000 coverage threshold of the National Deposit Insurance Fund (OBA).
The measures do not affect money on the accounts of clients for whom NHB provides investment services.
The MNB stressed that the problems at NHB Growth Credit Bank do not in any way threaten the stability of Hungaryʼs financial intermediary system as the bankʼs total assets account for just 0.2% of the sectorʼs total.
The central bank already imposed a fine of HUF 19 million on NHB in August for failing to fully comply with regulations on enterprise management, risk management, accounting, data provision, IT systems, and the prevention of money laundering and financing of terrorism.
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