A code of conduct for banks is ready to be signed, Ádám Farkas, head of financial market watchdog PSZÁF said in a television interview late Sunday.
An agreement on the text and content of the code of conduct has been reached at expert level, Farkas said in a program on public television. The code of conduct affects the entire scope of lending, including what information banks provide for borrowers, preparations for signing lending contracts and management of problem loans, he added.
It is in the best interest of the banking system to accept the code of conduct, said Hungarian Bank Association vice president Mihály Patai. Hungary's biggest retail bank, he said, referring to OTP Bank, along with other big banks have already suspended the sale of homes repossessed because borrowers defaulted on their loans, he added.
The code of conduct shows that a new world is starting in banking life, Patai said. In this world everything will be transparent for clients: a new partnership will be established between banks and clients, he explained.
If the code of conduct is approved, it will be necessary to amend the law on financial institutions to allow the code to be implemented, said Finance Ministry state secretary Erika Marsi. Under the code, banks could not raise handling fees over the rate of inflation, she added. (MTI-ECONEWS)