Central Bank Governor György Matolcsy will be talking about four foreign-owned banks leaving Hungary in an Friday evening program of news channel Hír TV. The detailed report has not been aired but the channel's website says the market exits are going to take place over the next 1.5 years.
"These banks are not lending, not assisting the national economy," Matolcsy is quoted as saying. According to the Governor of the National Bank of Hungary, part of the solution would be to strengthen the role of Hungarian-owned small and medium-sized banks, however the sale of large banks' portfolios could also support the creation of new Hungarian banks. The new market entry of Asian banks cannot be ruled out either, Matocsy added.
Foreign-owned banks account for 58% of Hungary's banking sector, the remaining 42% have local shareholders. The eight major players control 70% of loans, of these, up to four could be leaving the market, Matolcsy said. The NBH Governor said this could be taking place over the next 6 to 18 months rather than 3 to 4 years as predicted earlier.
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