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Hungarian banks to write off less in 2011, says MNB deputy-gov

2010 will be the year Hungarian banks write the most off their books, National Bank of Hungary deputy governor Ferenc Karvalits said at an event organized by the Hungarian Economists Society (MKT) on Thursday. Next year, the Hungarian banking sector will write off less, Karvalits said. Next year, economic growth is expected to pick up and lending activity to expand, but there are “downward risks”, he added. Banks' risk reserves have grown significantly in the recent period and strategy has become a matter of uncertainty, he said. One thing is certain: that the bank levy and the moratorium on evictions are having a very negative impact on the financial sector and reducing the competitiveness of Hungary's banking system significantly compared to systems in other countries in the region, he added. Hungary needs a stable and transparent economic policy if Hungarian's banks return on equity and return on assets is to rise, Karvalits said. (MTI-Econews)