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Transfer of county govt accounts to state treasury blow to retail banks, says Világgazdaság

The transfer of the stock of deposits and credit of county local councils in Hungary to the Hungarian State Treasury according to a recent agreement will deprive the country's major retail banks of a significant stock of deposits and credit, business daily Világgazdaság said on Wednesday.

Citing data from Hungary's financial-market supervisor PSzÁF, the newspaper reported that local councils and organizations operating under their authority had HUF 340.3bn in deposits and HUF 469.9bn in credit at financial institutions in Hungary.

PSzÁF data showed that 89.5% of the deposits were at major retail banks.

Világgazdaság reported that of eight of Hungary's 19 county governments hold their budgetary deposits at OTP Bank, three at K&H Bank and two at Erste Bank.