Erste Bank Hungary to cease cooperation with loan brokers

MNB

Erste Bank Hungary will cease its cooperation with loan brokers from October 1 because of the unfavorable economic and regulatory environment, but it will not pull out of Hungary, the lender told MTI on Friday, confirming a report in Napi Online.

The bank's lending products will only be available at Erste Bank Hungary branches from October.

Erste Group's management have confirmed their intention to continue the bank's activity as a defining and capital-strong player on the domestic banking market, Erste Bank Hungary said. The bank also wants to maintain its strategic ties to Magyar Posta, Vienna Insurance Group and ING Biztosító, it added.

"We will not allow such an adversarial economic policy -- that causes Hungary serious harm -- to drive us out," Erste Group chairman-CEO Andreas Treichl said in an exclusive interview with Napi Online.

Hungary's government is making banks shoulder the costs of an early repayment scheme for foreign currency-denominated loans at a discounted exchange rate.

Treichl warned that the measures by the government could cause investors to take their business to the Czech Republic, Romania or Slovakia for the short term.

He said Erste Group would not invest resources earmarked for business development in Hungary. It will, however, ensure sufficient capital for capital adequacy and liquidity to its Hungarian unit, he added.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Chain Bridge to be closed for traffic for 18 months City

Chain Bridge to be closed for traffic for 18 months

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.