The views of the central bank, Competition Office (GVH) and representatives from Hungary's commercial banks differed on the way retail loan products ought to be priced, but they agreed that creating a list of all borrowers - not just delinquent ones - would make lending cheaper.
National Bank of Hungary deputy governor Júlia Király said creating a system of loan pricing regulation that was flexible and offered incentives would take a long time, speaking at a conference entitled “Consumers on the Loan Market” at Budapest's Corvinus University. However, as these measures must be taken immediately, regulations are being refined with “a jackhammer”, she said. Measures taken now will have to be fine-tuned later, she added.
Király said the list of all borrowers was still missing from the competitive pricing of products and urged its establishment. She expressed regret that financial market regulator PSzÁF, which had earlier supported the list, was now withdrawing its backing.
FHB deputy-CEO László Harmati said competition is validated in the act of pricing loans. Thus a price offered by 50 lenders cannot be not competitive, he added.
Surd Kováts of GHV disagreed, saying the first installments of loans provided a good base for comparison on a well functioning market. An appropriate measure of the total cost of borrowing, better than the current one, is also necessary, he added.
Király said Hungarian banks' margins were high and not optimal for the size of the market, and added that market players cannot always ensure competition by themselves. (MTI – Econews)