Hungary’s Central Bank (MNB) and representatives of seven Hungarian commercial banks, accounting for the overwhelming majority of the domestic banking market, held discussions, MNB said in press release.
The participants at the meeting agreed that, although the Hungarian banking sector cannot be insulated from the effects of the global financial crisis, domestic banks are properly equipped to meet customer needs arising from economic growth in the future. The country’s leading banks, therefore, hold the view that lending, and in particular foreign currency lending, will continue to grow at an adequate, albeit declining, pace, and with tighter standards than in the earlier period. In view of the different business policies of the banks, the currency composition of loans will change: the share of Swiss franc-denominated loans is highly likely to fall, with forint and euro-denominated loans growing in importance. (press release)