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Bank established by govt, civil initiative could launch with HUF 6 billion

An internet bank established jointly by the government and a civil initiative could launch with capital of HUF 6 billion, daily Magyar Nemzet said on Tuesday.

The bank can be established after the National Economy Ministry approves its business plan and financial market watchdog PSZÁF clears it to start operating, László Körtvélyessy, the government commissioner charged with setting up the bank, told the paper. The state would own 49% of the bank and the civil initiative would hold 51%. Both would contribute in equal part to the bank's capital, although the state's half would be enough for the launch while the civil partners could draw in their half in under six months. The internet bank, dubbed Webbank, was registered at the beginning of the year as the result of an initiative to establish a low-cost lender for the benefit of Hungarian borrowers with foreign currency-denominated loans.
The civil initiative, dubbed Hiteltársulás, or 'Credit Association' in English, agreed in principle on the establishment of the bank at a meeting with National Economy Minister György Matolcsy a year ago. The bank could start operating as early as next summer, the paper said.