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PSzÁF investigates banks for possible violation of ethical code

Hungary's financial-market regulator PSzÁF has launched an investigation of 30 banks to determine if their failure to reduce their interest on forint-denominated loans commensurately with cuts in the National Bank of Hungary's base rate represented a violation of a new ethical code for banks, PSzÁF spokesman István Binder told the television station RTL Klub.

The average interest on forint-denominated loans declined 39 basis points to 10.26% in February from 10.65% in December, while the National Bank of Hungary's key-interest rate declined by 50 basis points to 5.75% from 6.25% during the same period.

Binder told RTL Klub that Hungary's new ethical code for banks clearly stipulates that banks must take the National Bank of Hungary's key-interest rate into account when determining their interest rates, adding that the code also states that interest rates must reflect positive transformations in the external environment. (MTI – Econews)