Economy 8 April 2025, 3:11pm

Hungary's central bank reaches five-point agreement with banks

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While the government is using ultimatums to force banks to reduce bank account charges to last December's lower levels (OTP has already announced that it will meet the government's requirement), the National Bank of Hungary (MNB) has reached a five-point agreement with the Hungarian Banking Association to make retail bank accounts simpler, more transparent and cheaper.

The agreement between National Bank of Hungary and the Hungarian Banking Association will

make the cost of banking simpler, more transparent and cheaper

announced MNB Governor Mihály Varga after receiving the leaders of the Hungarian Banking Association at his office on Tuesday morning.

The new agreement includes five measures to improve consumer information and reduce charges for certain retail financial services. The Governor and the heads of the Banking Association agreed that Hungary's financial system is on a sound footing and that banks' liquidity and capital positions are strong, which will allow for a reduction in bank charges.

According to the agreement, the banks will

make the basic account free of charge as long as the inflation rate does not fall below the upper limit of the central bank's tolerance band (4%) for three consecutive months (Márton Nagy has also talked about making the basic account cheaper in recent weeks, saying that extending it to families and pensioners would be desirable);
inform customers who may opt for a more favourable account offer than the current one, at the latest with the PAD (Payments Account Directive) statements. (Consumers who have a payment account must be provided with another document at least annually, called a statement of fees. The statement of fees contains information on the fees and interest paid by the consumer on the account, as well as any interest earned in the previous year.)
launch a customer information campaign providing detailed information on the annual costs of their account packages, so that existing account packages can be compared with other, less expensive schemes;
financial institutions will use the central bank's fee calculator on their websites to help customers choose the best account package, and
customers can then cancel their old account online to speed up the switch.

The central bank aims to reduce the cost of banking services in a noticeable and sustainable way, and sees the Hungarian Banking Association as a partner in this process, the MNB said.