MNB seeks more pledges on increased lending

Telco

The National Bank of Hungary (MNB) would like to see more banks declare how they plan to support economic growth in the coming years, as Erste Bank recently did in an agreement with the European Bank for Reconstruction and Development (EBRD), MNB managing director Márton Nagy on state-owned news channel M1.

Although increased lending is not linked directly to a planned reduction in the bank levy, banks are still expected to boost their corporate lending activity in light of their reduced burden, Nagy said.

The managing director said it was problematic that the tax base for the bank levy will change from total assets in 2009 to total assets in 2014. Banks that reduced their lending during the period will now benefit not only from a cut in the bank levy but also from a lower tax base, he added.

Under the governmentʼs agreement with the EBRD, the bank levy is set to fall from 0.53% of total assets to 0.31% from next year, leaving banks with HUF 60 bln.

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