MKB will establish mortgage bank
State-owned MKB Bank will establish its own mortgage bank together with Granit Bank as a minority owner, the application of which has already been submitted to the National Bank of Hungary, the lender said yesterday, according to Hungarian news agency MTI.
MKB not only wants to comply with financial regulations by establishing a mortgage bank, it also sees it as a strategic opportunity, the bank noted.
MKB chairman-CEO Ádám Balog has said in the past that due to economies of scale not every commercial lender could have a mortgage bank and MKB was ready to cooperate with other players.
MNB announced in June 2015 that it will require lenders to back at least 15% of their net mortgage loans with long-term liabilities from October 1, 2016.
Previously only OTP, UniCredit and FHB had mortgage banks in Hungary, but since the MNB’s announcement, Erste Bank has also set up its own mortgage bank and K&H Bank said it will do the same.
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.