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Hungary forex loan stock hampers monetary policy, says regulator chief

Hungarian banks' stock of foreign currency-denominated loans earlier reached such high levels that it hampered the success of monetary and economic policy, chairman of financial market regulator PSzÁF Károly Szász said at a European Union budget affairs conference in Budapest on Friday.

Foreign currency-denominated lending started in Hungary in 2004 and "met no restrictions in the course of institutional reviews", Szász said.

Hungary's government introduced a ban on foreign currency-based mortgages last summer. Szász said the regulatory environment changed from 2011, when PSzÁF was given the power to issue decrees. There are some financial areas for which the parliamentary process is too slow to regulate, he added.