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National Bank: Hungary Would Only Need 5 Large Banks

MTI-Hungary Today 2019.04.11.

Márton Nagy, deputy governor of the National Bank of Hungary, urged Hungarian banks to improve their efficiency and embrace innovation while boosting lending.

Speaking at a conference organised by portfolio.hu on Thursday, Nagy said the banking market in Hungary is oversaturated and it would be sufficient to have five large universal banks.

Bank products continue to be very expensive, he said.

Hungary’s Banking System Among the Most Expensive in Europe

He called on the bank sector to support sustainable economic growth, which would require a 12 to 14 percent increase a year in long-term lending volume. He said Hungarian banks would need fewer but more modern branches, and they should also progress in digitalisation in order to be able to adapt to new fintech solutions.

On the featured photo: Márton Nagy