A new era may be starting in economic policy – the promise of predictable operation

The Hungarian Banking Association held its annual General Meeting earlier today, at which Mihály Varga, Governor of the Central Bank (National Bank of Hungary) and András Kármán, Minister of Finance, both delivered speeches. At the event, President Radován Jelasity delivered his report, informing participants about the organisation’s activities and responsibilities. At the General Meeting, the Hungarian Banking Association held a general election of officials, electing a new Board, Supervisory Board and Chair for the Ethics Committee.

At the General Meeting, Members voted for issuing the following statement.

The parliamentary elections have ushered in a new era, bringing a distinctive 16-year period to a close. It often happens at the end of long cycles fraught with extraordinary challenges that regulatory intervention swings too far in the opposite direction, similarly to a pendulum. This has been the case once again. For the economy to function in a sustainable and healthy manner, it is desirable for the pendulum to return to its central position; letting market forces to prevail; and for interventions to be proportionate and predictable.

The financial sector remains a partner in shaping a predictable economic environment that is independent of electoral cycles, and in preparing and executing feasible decisions. This can add to investor confidence, encourage investment and contribute to the sustainable growth of the economy, thus helping boost social well-being. A banking sector operating within a stable regulatory and market environment acts as the economy’s immune system, safeguarding growth and stability. If this is lacking, the reverse impact is felt almost instantly: legal uncertainty distorts market conditions, restricts lending and substantially weakens the banking sector’s role in safeguarding the economy. This is one of the reasons why we consider it of fundamental importance to be able to set a transparent, pre-set road map for phasing out the extraordinary taxes imposed on the financial sector. The banking tax, the windfall tax and the transaction levy temporarily helped maintain fiscal stability during difficult periods. However, their continued existence does more harm than good: it curbs lending, distorts market processes and undermines not only the sector’s competitiveness but also the functioning of the economy. At the same time, interest rate caps, mandatory ATM installation and similar measures directly interfere with market competition, undermine financial culture and erode confidence in the Hungarian economy. Moreover, the regulatory treatment of the banking sector serves as a litmus paper for the entire economy, as whatever happens in the financial sector today, be it a windfall tax or an interest rate cap, may well be reflected in the functioning of other sectors a few years down the line.

Strengthening European integration and the promise of adopting the Euro could inject new dynamism into the entire Hungarian economy, as the EU and neighbouring countries are our key natural partners in both economic and political terms. The introduction of the Euro is a strategic decision that could create a persistently lower and more predictable interest rate environment in Hungary.

The financial sector is calling on the new Government to ensure a level playing field and allow market forces to freely prevail. Pure market competition yields the most sustainable results for stakeholders present in the financial and economic sectors: this reflects innovation and efficiency. Equal competitive conditions yield the best quality and the most favourable prices for customers.

The prevalence of market forces, alongside various forms of support, can also promote a more efficient allocation of resources, reduce budgetary pressures and, in the long term, support a more balanced, organic path of economic development. Government loan schemes can only be regarded effective if they complement market-based funding options, are aligned with their way of operation, and their scale does not cause any significant distortion of market demand and supply. Support programmes aligned with electoral cycles may also trigger economic impacts that work against their intended objectives. By contrast, a more targeted and predictable support/subsidy strategy creates a more stable and predictable economic environment for customers, investors and financial institutions alike. Experience from our region, as seen in Slovakia, Slovenia and Croatia, shows that, upon joining the monetary union, lending rates gradually converge towards the Eurozone average, whilst exchange rate and inflation volatility subside. This, in turn, indirectly improves the affordability of housing, without the need for significant budgetary intervention. In the meantime, it is justified to maintain a targeted housing subsidy scheme. As for SME lending, it is advisable to set the most optimal ratio for the economy between market-based and subsidised loan schemes based on professional consensus.

A competitive economy rests on modern, digital financial infrastructure and a predictable legal environment. When it comes to digital banking, it makes sense to build on the EU’s best practices: to simplify the sharing of data accessible in public databases; as regulation that is both secure and flexible, along with the development of digital customer journeys all improve customer experience and boost competition. The banking sector, just as in the past, will continue to be a partner in shaping an ideal and easy-to-apply regulatory environment.

The banking sector is ready to play an active role in this new phase of economic growth. One prerequisite for this is that the economic policy ‘pendulum’ should remain close to a balanced mid-point in the long run, creating an economic policy environment that is predictable, competition-neutral and rests on natural market mechanisms. We trust that the new Government will support the establishment of such a regulatory environment, which serves both sustainable economic growth and financial stability. We also wish to take this opportunity to congratulate the new Government on its formation, and wish them every success in achieving our common economic goals.

At the General Meeting, awards and honours were also presented, reflecting the results achieved in the past year.

The Golden Beehive Award was presented to:

• Zénó Amtmann – OTP Bank
• Anita Deák – National Deposit Insurance Fund
• Marianna Drevenka – UniCredit Bank
• Dávid Hollósi – MBH Bank
• Zsuzsanna Koszta – OTP Bank
• Gábor Liener – Raiffeisen Bank
• Máté Neményi – KDB Bank

The Golden Beehive Commemorative Plaque was presented to:

• Judit Baracs – SWIFT

In addition, 18 individuals were invited to take up positions as Chairs of the Hungarian Banking Association’s Working Groups, upon the presentation of their Letters of Appointment.

As part of the general election of officers, Members of the Hungarian Banking Association elected the following governing bodies for the next three years:

Board: Radován Jelasity (President), András Becsei (Vice President); Zsolt Barna, Krisztina Bogdán, János Gerendás, Éva Hegedüs, Balázs Tóth;

Supervisory Board: Peter Roebben (Chair), Ágnes Erdős (Deputy Chair), Tamás Fischer, Balázs Szabó, András Szepesi;

Ethics Committee: László Balogh (Chair).

Budapest, 13 July 2026                                                                         Hungarian Banking Association

The Hungarian Banking Association held its Annual General Meeting earlier today in the recently renovated headquarters of GIRO Zrt. The event was attended by bank CEO’s as well as Government leaders responsible for economic and financial affairs. Balázs Hankó, Minister of Culture and Innovation, highlighted the intermediary role of the banking sector in the field of family support schemes, while Zoltán Kurali, Deputy Governor of the National Bank of Hungary (MNB), stressed the importance of co-operation between MNB and the banking sector.

At the General Meeting, the membership decided to publish the following statement.

A quarter of a century ago, one of the most notable tasks ahead of us was to ensure a smooth transition to Y2K, i.e. to the new millennium in IT. At the time, many thought the 21^st century would become the age of robots, characterised by cheap mass production, rapid economic and service industry evolution, the rise of fintech giants and financial stability. Futuristic visions of a complete transformation of financial markets emerged, such as a cashless society, unmanned services, as well as fully digitalised, paperless transactions. A quarter of the 21^st century has already passed, with a global financial crisis, a pandemic threatening our health, devastating wars and the most recent protectionist phenomenon. Some of the predictions seem to have come true, others have turned out to be exaggerated. Therefore, the time has come to look back and use this opportunity as a basis for planning a future that also responds to the real challenges of the digital age.

The role of financial markets, with the banking sector being the dominant sector within, has been strengthened over the past 25 years. In this period, the Hungarian banking sector's balance sheet total has grown by 900%, while corporate lending has increased fivefold, including a 50-fold increase in the guaranteed SME lending portfolio. A significant milestone is that we have now reached 10 million bank cards, and assets under management in pension funds have come close to HUF 2 600 billion, and the number of issuing companies on the Budapest Stock Exchange has exceeded 150. Over the past 25 years, domestic banks have paid more than HUF 8 000 billion in taxes and contributions into Hungary’s budget.  

Over the past quarter of a century the banking sector has repeatedly demonstrated that, despite the extra burdens, it remains a stable pillar and catalyst for economic growth and recovery in the wake of various crises. In 2025, the key commitments of the Hungarian Banking Association were as follows:

1. Banks are restraining from introducing annual inflation-tracking increases in retail account charges,
2. Availability of a free basic account,
3. Regular awareness-raising about the financially attractive bank account packages available,
4. 5% mortgage interest cap for the first green home of young people,
5. Fair insurance conditions for the baby loan product,
6. Interest rate reduction in the Széchenyi loan programme,
7. Installation of ATMs in settlements with more than 2000 inhabitants.

These achievements and voluntary commitments show that the traditional financial sector has played and continues to play a crucial role in growing and running the economy and in carrying the tax burden.

When assessing the economic processes of our time, it is useful to bear in mind that the international situation fundamentally determines and overrides the opportunities Hungary has for developing its open economy. The global world order keeps taking new directions in a matter of moments, with the consequence that economic systems and co-operation will evolve on a different basis and on new foundations. Today's decisions will determine the future for decades to come, which is why it is of paramount importance for the operating environment of the banking sector to ensure international competitiveness and the ability to support the economy.

Cash has always had its usual place and role. Evolution, a transparent economy and the fair taxation of the public have necessitated a rethink of the role of cash. The costliest process is the repeated exchange back and forth between cash and money on the account, as well as keeping cash available for this purpose.

The Digital Citizenship Programme sets out a way forward. Broad use on market terms is also a key to success here. New digital solutions and channels, including electronic financial services, open up new horizons if they are available to market players and their customers at low cost and free of extra taxes and contributions. The universal objective is to make digital services easily accessible and user-friendly. Here again, the successful match is between a Hungarian operator and Hungarian consumers.

Given that financial markets have become fully globalised, the situation in Hungary is assessed from the perspective of the financial systems and relevant actors currently operating. Financial actors in Hungary can be divided into four groups:

• Banks with head offices in Hungary that are owned either to a significant degree or wholly by Hungarian investors. They have a market share of around 50%, as well as a strong local presence, and operate globally from here.
• The interests in Hungary of large European banking operations, which strengthen our embeddedness in the single European financial market. As key players in EU trade and economic co-operation, they play a crucial role in the Hungarian national economy.
• The subsidiaries of banking operations outside Europe, i.e. players of global importance that ensure global financial and economic involvement. Their operations in Hungary are impressive due to their ability to attract capital. Working capital investment by the owner countries is clearly a key factor for the Hungarian economy.
• A significant group of non-bank financial service providers, which complement and support the dynamic operation of the credit market with their specialised activities and services.

They form the basis of the Hungarian Banking Association, and work together to provide the financial resources and connections required for the sustainable operation of the Hungarian economy. The role of Hungarian-based financial service providers must be strengthened, as together they ensure the self-sustaining evolution of the Hungarian economy. They pay taxes in Hungary, and are the most committed towards its citizens and businesses. In order to ensure that customers can continue to be served by domestic financial service providers in the long run, the extra burdens should be lifted from them now.

Quite often, too much is expected of the banking sector both in Hungary and abroad. The most legitimate expectation at national level is to finance Hungarian businesses and families, as the key financial pillar of sustainable development. The current Hungarian funding programmes are wide-ranging. In co-operation with the Government, the central bank and partner organisations, preferential programmes and support channels have been established that are predictable and easily accessible by the entire corporate and retail clientele. In addition to these, financial institutions have also come up with their own programmes, according to their commitments, and this year's commitments have been grouped around 7 topics, as explained above.

To continue and strengthen programmes, despite a volatile regional and global environment, economic operators and the banking sector all need predictability, stability and the cessation of overburdening. To this end, we count on the co-operation and support of the National Assembly, the Ministry of National Economy, the ministries committed to economic development and the National Bank of Hungary. The banking sector is, of course, open to co-operation and supportive of the tasks and objectives of these actors.

At the General Meeting, the election of officers also took place. The new Chair of   the Supervisory Board of the Hungarian Banking Association is Peter Roebben (K&H), and its new Members are Krisztina Bogdán (ING) and Bence Katona (MFB).

The event also included the presentation of awards for achievements in the past period.

The Golden Beehive Award was presented to:

• Krisztina Ivanics (Exim)
• Linda Murányi (Erste)
• István C. Szabó (MBH Bank)
• Judit Szűcs (OTP Bank)
• Zsolt Takáts (Raiffeisen Bank)
• István Wimmer (MGYOSZ)

The Golden Beehive Commemorative Plaque was presented to:

• Krisztina Kiss (BEVA)

In addition, 6 people were invited to chair a banking association working group, by way of presenting their letters of assignments as leaders.

Founded 35 years ago, the Hungarian Banking Association held its anniversary celebratory conference and General Meeting today, which was attended by, beside banks’ executives, government leaders responsible for the economy and finances, as well as 11 foreign banking association delegates. Márton Nagy, Minister for National Economy, informed participants about the as-is status the Hungarian economy. István Nagy, Minister for Agriculture, spoke about the best way of ensuring liquidity for businesses and sustaining the competitiveness of production under the current, more challenging circumstances; while Barnabás Virág, Deputy Governor of MNB, addressed the current challenges of monetary policy. A cooperation agreement between the Ministry of Agriculture and the Hungarian Banking Association was signed.

At the General Meeting, the members decided to publish the following communiqué.

The wars in our neighbourhood and in the world constantly pose a challenge to democratic countries, including the Member States of the European Union. War evolvements cause uncertainty in energy prices and supply chains, the rearrangement of foreign trade flows due to the sanctions, the sense of escalation of war and the financial expenditures required for self-defence constantly hinder predictable economic development opportunities. Hungary is particularly sensitive to this, as its opportunities are significantly limited by the foreign economic environment due to its highly concentrated foreign market relations and small and open economy.

In recent decades, the open economy based spectacular development has been ensured by the adoption of market rationale. This demonstrates that the banking sector can operate most effectively and contribute to economic development on a market basis. That is why we support market-based development, that is why we are committed to financing investments in Hungary and Hungarian investments abroad And that is why we fight against market-distorting effects such as the sectoral surtax resulting in over-taxation, the interest rate cap and over-bureaucratized rules, as well as such legal framework that regulates the same activity in a different way and gives an advantage to the banks' new competitors. Today, these are the main obstacles to increasing European and regional competitiveness.

The Ministry of Finance contributes to the stabilization of the budget and the reduction of high inflation through fiscal rigour, while the Magyar Nemzeti Bank contributes through the central bank's interest rate policy. And the Ministry for National Economy is trying to give a new boost to the Hungarian economy by increasing investments. We can responsibly welcome actions to curb inflation, the targeted interest rate-subsidized credit facilities and decisions to support market processes, all of which contribute to the rapid recovery of the economy.

Digitalization is penetrating banking processes more and more deeply. On the one hand, this means more competitive, more customer-friendly and, ultimately, lower-cost services. In-depth digitalization helps electronic financial solutions popular with customers to gain ground. Digitalization is also helping to displace the expensive cash that fuels the grey economy and leads to the emergence of new social norms. Another effect of digitalization is the emergence of cyber crime. Cybercrime is a criminal category that law enforcement agencies are responsible for eradicating. In addition to the banks' very significant preventive IT efforts, customers can be protected by providing information and developing their financial literacy. The Cyber Shield program, organized jointly with the MNB, government agencies and other partners, and the continuous awareness-raising media appearances implemented together with the Media Union Foundation contribute to this. This can help reduce the number of victims of cybercrime, but the ultimate solution will be successful crime detection.

At the anniversary event, recognitions were also given based on the results of the last year/decade.

The Golden Beehive Award honour was conferred on:

• Sébastien de Brouwer (EBF)
• Gergely Fábián (NGM)
• Judit Gondos (PM)
• Ágnes Hornung (KIM)
• Anna Kósa (Erste)
• Péter Kovács (MagNet)
• István Nagy (AM)
• Ákos Tisza-Papp (MBH)
• István Tresó (K&H)
• Katalin Werny-György (OTP)

The Golden Beehive Medallion Award was conferred on:

• Tibor Pataki (MNB)
• Katalin Szenes (ÓE)

The Polish delegation awarded the Copernicus Medal to Levente Kovács (Hungarian Banking Association) for his work in the development of the banking sector.

In addition, 8 persons were assigned for the positions of Chairman of Banking Association Working Group and chief advisor by handing over their credentials.

Budapest, 10 May 2024                                  Hungarian Banking Association

The Hungarian Banking Association held its Annual General Meeting earlier today. At the meeting, Mihály Varga, Minister of Finance, informed participants about the state of the Hungarian economy and the budgetary outlook, while Csaba Kandrács, Deputy Governor of the National Bank of Hungary (MNB), informed participants about current monetary policy challenges. Anikó Túri, State Secretary of the Ministry of Economic Development, summarised the challenges of economic development going ahead. At the General Meeting, the Hungarian Banking Association held a general election - electing a new Board, Supervisory Board and Ethics Committee. At the General Meeting, the membership decided to publish the following statement.

The Russia-Ukraine war that broke out in 2022 has fundamentally shifted the tasks of the European community. The war in our neighbourhood has resulted in a mass influx of refugees into the European Union, an energy crisis and, in large part as a result of these, a level of inflation unseen for decades.  The Government responded to the higher interest rates prevailing on the market by introducing an interest rate freeze in respect of several loan types in 2022, which, although not supported by the Hungarian Banking Association, was responsibly implemented by the banking sector.The Banking Association's position in this matter has not changed: we see the interest rate freeze in its current form as a measure that is holding back bank lending, slowing economic growth and weakening financial awareness, and thus we call for its lifting.

The Ministry of Finance is contributing to the reduction of the rate of inflation by tightening fiscal policy, while the National Bank of Hungary (MNB) is raising interest rates. The Ministry of Economic Development is trying to bring new momentum into the Hungarian economy by boosting investment. The Hungarian Banking Association welcomes the steps taken to curb inflation, as well as targeted interest rate subsidised lending schemes and the allowing of market conditions to prevail, which together can contribute to fast economic recovery.

However, in order to catch up with the advanced economies of the European Union and to achieve sustainability, an actively lending Hungarian banking sector is indispensable. However, the interest rate freeze and the extra tax burden on banks make it impossible for financial institutions to raise the capital required for this. The burden on the banking sector must be reduced to allow steps of substance to be taken on market terms, to facilitate convergence. This is the only way for the Hungarian banking sector, in co-operation with the Government and the Central Bank, to become an engine of economic growth. As a result of this co-operation, the capital market can evolve further, along with the country's international weight and its ability to attract capital.

The banking industry continues to witness a strong proliferation of digital solutions; however, certain regulatory measures continue to preserve the prominent role of cash. The banking sector is actively pursuing the digital switchover in line with international trends, in co-operation with numerous relevant authorities and Governments. One of the key current challenges is the improvement of digital security. To this end, the Hungarian Banking Association has launched the CyberShield programme, supported by a comprehensive communication campaign.

At the General Meeting, awards were also presented based on the achievements of the past year. The winners of the Golden Beehive Award are as follows:

Orsolya Haller - CIB Bank

Péter Hidvégi - Raiffeisen Bank

Zoltán Illés - Duna Takarék Bank

István Lengyel - BAACE

Balázs Nagy - Garantiqa Hitelgarancia

Éva Schadl - Erste Bank

In addition, 11 people have been invited to take up the position of Chair in the Hungarian Banking Association’s Working Groups, following the presentation of their letters of appointment.

As a result of the general re-election of officials, the membership of the Hungarian Banking Association has elected the following members for the Hungarian Banking Association’s governing bodies for the next three years:

Board: President: Radován Jelasity (Erste Bank Zrt.), Vice President: András Becsei (OTP Mortgage Bank Ltd.), Board Member representing small and medium-sized banks: Éva Hegedüs (Granit Bank Ltd), Board Members: Zsolt Barna (MBH Bank Ltd.), Pál Simák (CIB Bank Ltd.), Balázs Tóth (UniCredit Bank Hungary Ltd), György Zolnai (Raiffeisen Bank Ltd.),

Supervisory Board: Chair: Guy Libot (K&H Bank Ltd.), Deputy Chair: Veronika Spanarova (Citibank Europe plc. Hungarian Branch Office), Supervisory Board Members: Tibor Bodor (ING Bank Hungarian Branch Office), Ágnes Erdős (Bank of China Limited Hungarian Branch Office), Zsolt Selmeczi-Kovács (Giro Ltd.),

Ethics Committee: Chair: Henrik Auth

Budapest, 19 May 2023.

Announcement following the General Meeting of the Hungarian Banking Association

The Hungarian Banking Association held its annual ordinary General Meeting today. Finance minister, Mihály Varga, delivered an evaluation the current state of the Hungarian economy, and Governor of the National Bank of Hungary, György Matolcsy, presented a vision for Hungary following the pandemic, and both greeted the participants of the General Meeting in a video message.

The Members of the Hungarian Banking Association decided to issue the following statement concerning the current state of the economy:

The state of emergency caused by Covid-19 in 2020 has continued into the first half of 2021. The successive waves of the pandemic and the spread of the coronavirus have manifested themselves differently across the European Union. Governments have taken a variety of protective measures. In Hungary, the third wave has caused the most severe health challenge. The possibility of restarting the economy as quickly as possible is helped by an effective vaccination program.

Data available to us show that the Hungarian economic downturn in 2020 corresponds to European trends; whilst the rate of unemployment has been largely kept under control and real wage growth has remained stable for the majority of people who managed to keep full-time jobs. There are clear signs that in 2021 the economy is on the way to recovery. This has been to a great extent facilitated by the Hungarian banking sector's lending activity in coordination with the measures implemented by the Government and the National Bank of Hungary. Another significant factor at play was that the moratorium on loan repayments introduced in Hungary to ease the burden on retail and business clients caused by the pandemic turned out to be the most favourable scheme for customers across Europe. Sparing no effort or extra costs, the Hungarian banking sector has demonstrated its readiness to serve its retail and business clients despite the major challenges faced. In 2020, a year ravaged by the pandemic, corporate loan disbursements increased by 6% compared to the previous year, and, parallel with this, Government family welfare support programmes were developed and implemented by the banking sector, even as the aggregate cost of the loan repayment moratorium schemes is expected to exceed HUF 400 billion. The key goal of the moratorium, and, in particular, the core task of the banking sector is to provide targeted and effective support specifically to those who need it. A programme that goes beyond this goal can no longer be professionally supported by the Hungarian Banking Association, as there is no justification for incurring extra costs for the banking sector in respect of customers who have sufficient income and/or reserves to meet their financial obligations. The fast rebooting of the economy and the maintenance of the intensity of lending activity in the banking sector are guaranteed by the fact that both professional and social aspects are taken into consideration.

However, the extraordinary difficulties have yielded positive effects as well: banks have accelerated digital transformation, and in just a few months we made as much progress as we would normally have in a decade. This has an impact in all areas of the economy. Looking ahead, electronic payments are expected to increase, leading to a whitening of the economy and a rise in tax revenues, as well as a drop in the costs associated with cash usage. Paper-based transactions and related administrative duties are declining. New forms of engaging workforce are emerging, resulting in more flexible work solutions that may be better suited to individual life situations. New types of jobs are created, and their quick adoption brings competitive advantages. However, we must also be mindful that, due to the accelerated digital transformation, the number of attempts at fraud in the field of electronic banking is on the rise, and new forms of cyber-crime are emerging. These can only be countered effectively through extensive cooperation and professional assistance in the fields of IT and finance, the deepening of our clients’ financial knowledge and conscious customer behaviour.

Taking a look at the international scene, we see that the system of global relations is shifting, and in this process diverging interests come to the surface, often leading to conflict. In this complex and volatile period, Hungarian foreign economic activity progresses and defines its goals in the fields of investments, economic co-operation and export-import markets with an openness and readiness to seize new opportunities, including on export-import markets. The toolkit available the Hungarian banking sector makes a significant contribution to the success of these processes. The development of global integration and co-operation, with special focus on the European Union, also supports the stability and strengthening of financial markets, contributing to sustainable economic growth.

In recognition of last year's achievements, prizes were also awarded at the General Meeting.

‘Golden Beehive Award’ recipients:

• Katalin Baginyi (Unicredit Bank) for her outstanding achievements in corporate financing and the development of banking products,
• Tibor Gáspár (Raiffeisen Bank) in recognition of his unrelenting efforts in the fields of taxation and accounting,
• Erika Lakos (K&H Bank) for her outstanding work in the field of banking regulatory tasks,
• Erik Landgráf (Takarék Mortgage Bank) for his unique service in the field of legal regulation of the banking sector,
• József Polgár (KDB Bank) for several decades of outstanding work in the field of vault and cash management.

‘Ambassador of Financial Culture’ award recipients:

• Zsófia Strasszer (‘Keleti Károly’ High School of Economics, Budapest) secondary school student, winner of the 2021 European Union Financial Quiz (organised under the EBF’s European Money Week programme),
• Viktória Hegyi (‘Keleti Károly’ High School of Economics, Budapest) coach of the 2021 European Union Financial Quiz champion.

As the former chairman of the Hungarian Banking Association’s Supervisory Board, David Moucheron (K&H Bank) will continue his career at the parent bank, he resigned from this position. For the term ending with the election of new officials in 2023, the General Meeting appointed Balázs Tóth (Unicredit Bank) as Chairman of the Supervisory Board.

The bank CEOs attending the General Meeting expressed their special thanks to colleagues in the financial sector for their dedication over the past year. Concerning the handling of the pandemic situation, all key observers were highly appreciative of the performance of the banking sector and its employees. We are thankful for the recognition and acknowledgment of our work, and will remain committed in our effort to fully earn this trust in the future.

Budapest, May 26, 2021                                The Hungarian Banking Association

Press Release of the Extraordinary General Meeting of the Hungarian Banking Association

On July 1, 2019 the Hungarian Banking Association held an extraordinary General Meeting, where a new President, Vice-President and Board Members were elected, as was necessary due to recent changes in bank leadership.

The General Meeting of the Banking Association elected as president, with unanimous support, Mr. András Becsei, who had previously served as Vice-President. Mr. Radován Jelasity, previously Board Member, was elected to fill the vacated post of Vice-President. Ms. Éva Búza and Mr. József Vida received mandates from the decision-making body to be new Board Members.

The ordinary renewal of officials takes place every three years at the Hungarian Banking Association, with the next due in the spring of 2020. Therefore the officials that were elected at this occasion have undertaken to serve in their posts until the spring of next year. At that point, the Association will elect a new Board, a new Supervisory Board and a new Ethics Committee as part of the full renewal of officials.

In his speech, the newly elected President emphasized that the Hungarian Banking Association wishes to continue its constructive cooperation with the government and the central bank, through which the banking sector can provide a stable financial background for our growth – which has surpassed the EU average.

Special topics about the national economy were discussed at the CEO’s Forum, an event that took place as part of the General Meeting. The guest speakers of the meeting were Dr. László György, State Secretary for Economic Planning and Regulation from the Ministry for Innovation and Technology, who gave an up-to-date summary through his presentation entitled “Challenges and Tasks to Improve Our Competitiveness”, and Mr. Miklós Vecsei, Commissioner from the Ministry of Interior, who discussed ways to help disadvantaged regions catch up to others.

1 July 2019, Budapest                                   Hungarian Banking Association

The Hungarian Banking Association celebrated the 30^th anniversary of its establishment on April 4-5, 2019 with a ceremonial program series. This anniversary date coincided with the 100^th anniversary of the establishment of the Banking Association’s predecessor, the Association of Savings Banks and Banks (TÉBE). On the opening date the financial sector held an International Financial Leaders’ Forum, which was opened by Minister of Finance, Mihály Varga.* The closing event of the program series was the Hungarian Banking Association’s General Meeting, where the leaders of the Banking Association’s members decided to adopt the following communiqué:

On the occasion of our 30^th anniversary, we are grateful to the banking leaders and their work who founded the Hungarian Banking Association in 1989. With the step they took, the Hungarian banking sector was able to reestablish its own advocacy group after forty years of forced suspension.  In the past few decades the Hungarian Banking Association became a well-known and definitive professional advocacy institution. Its activities cover the entire financial sphere and its domestic and international involvement has become indispensable in the field of advocacy, cooperation for economic development and the raising of financial awareness. The Hungarian Banking Association has become the “voice” of the Hungarian banking sector that people expect to, from time to time, publish guiding opinions, resolutions on both domestic and international economic changes.   

These days worry mixes with trust when we speak about Europe’s economic and financial developments. Despite the challenges we face, we still must represent our fundamental interest, which is for the European Union’s economy to grow, for the Union to strengthen and for all those nation states which are part of it geographically, economically and culturally to find their homes within it. It is based on sustainable economic growth that our sector’s fundamental interest is to moderate the uncertainties and detrimental consequences of BREXIT. This is also the reason why we support that our neighbors from the South should enter the EU as soon as possible. It is the common interest of the nation states of a unifying and growing European economy to play a definitive role in the development of the world economy. Here we must emphasize that the banking sector can ensure the growth of the European economy through the role it plays in individual countries and its existing liquidity. At the same time the foundations for increasing our regional and international competitiveness can only be laid down by an efficient and unified European regulatory environment.

Amidst the many extraordinary challenges of the past few years, the President of our Association, Mr. Mihály Patai, has quoted a Bible-derived expression for cyclical development several times: the seven years of famine and the seven years of plenty. The first period not only burdened the sector with many types of loss, but also, lacking the necessary sources, developments that would have been necessary lagged behind. The banking sector concluded a successful year in 2018. At the current state of the cycle, hopefully at the beginning of an upward trend, we must make up for what has been delayed both in terms of development and efficiency. This is the only way we can provide the necessary impulses to aid the development of sustainable economic growth in the age of digital transition. We cannot forget our seven years of famine, since on the one hand the true balance sheet is derived from the evaluation of both halves of the cycle, while on the other, lessons from society may greatly help new regulations to improve competitiveness, and with it, sustainable growth.

The upcoming period will concentrate on the digitalization of banking services. The entire banking sector is preparing to grant all the innovative services that can provide the customer experience through a truly safe IT interface. The banking sector is preparing to take the lead in the market as the provider of safe financial services, and the foundations for this endeavor will be its commitment to innovations, the capital power of the sector and its comprehensive experience in IT and knowledge about its customers. Today, the Hungarian banking sector is in the forefront internationally in customer safety, and this will continue to be so in the digital age. From the point of view of customer safety, it is also important that the regulator provide the same conditions and establish the same requirements for both the old and new, the classic and the innovative actors of the market. 

As part of the anniversary program series, the Hungarian Banking Association’s Golden Beehive Awards were awarded to upper leaders who have played a significant role in developing the banking sector and to professionals who performed outstanding work for the Banking Association.

Award recipients:

For their work in the banking sector:

• Mr. Włodzimierz Kiciński, Executive Vice President of the Polish Bank Association,
• Ms. Erika Kovács, Chair of the Hungarian Financial Arbitration Board,
• Mr. János Nyemcsok, General Deputy Chief Executive Officer of MKB Bank
• Mr. Jenő Siklós, Deputy Chief Executive Officer of Gránit Bank,
• Ms. Andrea Wéber, General Manager at CIB Bank,
• Mr. László Wolf, Deputy Chief Executive Officer of OTP Bank.

For their work at the Hungarian Banking Association:

• Ms. Erzsébet Büki, Head of Product & Sales at Oberbank,
• Mr. Zoltán Fényi, Chief Legal Counsel at Sberbank,
• Mr. Csaba Molnár, Head of Department at Raiffeisen Bank,
• Mr. Zsolt Pál, Associate Professor at the University of Miskolc,
• Mr. Szabolcs Pintér, Chief Accountant at Bank of China.

*After the Financial Leaders’ Forum at MKB Bank, OTP Bank invited the delegates from 13 countries, the government and central bank representatives and the Hungarian bank leaders to a Gala Dinner, where they were welcomed by Ms. Andrea Bártfai-Mager, Minister without Portfolio for the Development of Public Assets, and Mr. Gergely Gulyás, Minister of the Prime Minister’s Office. On the second day, the morning of April 5^th, the sector organized an international conference with the support of OTP Bank, where Mr. Balázs Rákossy, State Secretary for the Utilization of EU Funds at the Ministry of Finance, and Mr. László Windisch, Deputy Governor of Magyar Nemzeti Bank (the Central Bank of Hungary) both held presentations. Presentations were also held by guests from the Hungarian and the international banking sectors, by Mr. Sándor Csányi, Chairman and CEO of OTP Bank, Mr. Mihály Patai, President of the Hungarian Banking Association, and Mr. Wim Mijs, Chief Executive Officer of the European Banking Federation. After this, the delegates from the European banking associations consulted on cooperation between Europe and Asia with Mr. Yang Zaiping, Secretary General of the Asian Financial Cooperation Association (AFCA).

April 5, 2019, Budapest                                         Hungarian Banking Association

On 20 April 2018, the Hungarian Banking Association held its annual General Meeting, attended by the CEOs of financial institutions, as well as Mihály Varga, Minister for National Economy and Deputy Governors of the National Bank of Hungary: Ferenc Gerhardt.

The General Meeting commemorated Mr Zoltán Urbán, Member of the Hungarian Banking Association’s Board and former CEO of Eximbank, who had passed away tragically and unexpectedly.

The General Meeting elected Tamás Bernáth (MFB - CEO) as the new Member of the Hungarian Banking Association’s Board.

The CEOs of the Hungarian Banking Association’s member institutions have decided to issue the following statement:

Communiqué

We can report that after a long and difficult period following the year 2008, in 2017 the Hungarian banking sector closed an outstandingly good year. Last year’s profitability fits in with international and regional trends. The profits realised typically went into profit reserves, which, due to more intense lending activities, support the accelerating growth of the economy. The foundations of the banking sector’s positive results were laid down by the sector’s stable operation and the favourable evolution of lending costs. At the same time, keeping up with the dynamic rate of technical evolution and changing customer needs requires on-going rejuvenation, adaptation and innovation on the part of the sector’s players.

‘The banking sector can only serve the economy’s development in an economic environment offering predictable legal, taxation and governance conditions, and other economic players also expect a similar environment. Therefore, in our relationship with the legislator and the authorities, we continue to place the emphasis on co-operation and scrupulous professional discussions.’ – explained Mihály Patai, President of the Hungarian Banking Association.

All players in the Hungarian banking sector support the key joint objective of strengthening continuity and predictability in financial policy. This can ensure the successful short-term and long-term operation of businesses and creditors alike. After the dynamic utilisation of EU funds, a new era is approaching, where each economic player is compelled to find the competitive development path that will determine its future. The domestic banking sector has sufficient capital strength and liquidity for funding any necessary reorganisation and developments.

We must not forget about the international competitive situation either. In order to improve our competitiveness, it is essential that in the years ahead of us we quit the regulatory race taking place amongst European states, by overcoming bureaucratic over-regulation at national level. The achievement of this objective could be greatly helped if the legislator involved representatives of the financial sector in the preparatory process of legislation from an early stage in the regulatory process. To allow the Hungarian economy to perform well and in a sustainable way, and to facilitate its extension beyond national borders, the financing Hungarian financial institutions must reclaim and retain their regional competitiveness. Therefore, we consider the lifting of extra burdens, initially imposed as crisis management solutions, inevitable.  They include

• the staged discontinuation of special taxes imposed on banks and financial institutions,
• the whitening of the economy and the reduction and eventual withdrawal of the transaction levy, which goes against the elimination of cash, including, in particular
• the abolishing of all forms of taxes and levies imposed in respect of free banking services (such as the free cash withdrawal allowance of 150 thousand HUF/month).

The Hungarian financial market is part of the European and global markets. At times when protectionist trends also threaten the Hungarian economy, the assertion of our interest can only be achieved subject to the harmonised development of the European Union and the deepening of economic integration, and therefore we are committed to these objectives. We also believe that the conclusion of Brexit negotiations in a way that allows existing economic connections to be retained, is to be commended. In terms of global bank regulations, we consider the globally consistent application of regulations desirable, to ensure that the development of the European Union’s financial system and the extension of its economy can take place free of competitive disadvantages, in a sustainable manner.

The Hungarian Banking Association traditionally grants awards to bank colleagues who have made a significant contribution to the operation and development of the banking sector, at its General Meeting. In 2018, the Hungarian Banking Association’s Golden Beehive Award was granted to:

• Bence Gáspár (OTP Bank) for his outstanding communication activities and dedication in the banking sector;
• Rita Jeges (Erste Bank) for her dedicated and constructive support for the Hungarian Banking Association’s work;
• Marcell Király (K&H Bank) for his outstanding work in the corporate financing and SME development areas of the banking sector;
• Róbert Nagy (Garantiqa Hitelgarancia) for his outstanding and innovative activities contributing to the growth of guaranteed lending to small and medium-size enterprises;
• Attila Rankó (Deutsche Bank) for his outstanding professional activities in the area of payments and in the adaptation of European banking regulations.

20 April 2018

Photo: Dániel Németh

Hungarian Banking Association

Statement issued by the General Meeting of the Hungarian Banking Association

On May 12 ,2017 the Hungarian Banking Association held its annual General Meeting, which, next to the CEOs of financial institutions, also hosted guests Ágnes Hornung, Secretary of State at the Ministry for National Economy and the Deputy Governors of the National Bank of Hungary. At the General Meeting, elections were held for each member of the management.

The CEO’s of the Hungarian Banking Association’s member institutions have decided upon issuing the following statement:

Official statement

We can report about the year 2016 with confidence that the positive signs of a turning trend are already showing, which can be a stabilising, what’s more, invigorating factor in the growth of the local economy.

This is of special significance, given the fact that the financial sector has been suffering significant losses since 2008. As a result, internal cost levels were reduced to exceptional levels. At the same time, cost-cutting was marked by the transaction levy, booked as cost, as well as the exceptionally high level of special taxes. In the last decade, this went hand-in-hand with the inevitable postponement of numerous investments.

In 2016, the improvement of the economy in general, along with market recovery, created a one-off opportunity to cut back on bank provisions. The sale of card company stocks and dividends originating from foreign markets created revenues that were significant at sector level, but were also one-time or unique in nature.

’In response to market and innovation challenges, in the following years the banking sector will implement significant IT developments and investments. At the same time, banks will also have to maintain tight cost control, which will result in moderate growth even in the medium term, falling significantly short of the European average.’ – explained Mihály Patai, (RETIRING/RE-ELECTED) President of the Hungarian Banking Association.

The activities of the banking sector are characterised by a constructive evaluation of past events and a positive outlook, as well as intense competition not only on the domestic market but also in an international context. Hungary’s international position and its regional significance require the extension of both production and international co-operation, for which the banking sector can provide the development resources required.  At the same time, the bilateral confidence structure of financing necessitates the reinstatement of the banking sector’s reputation, which is the responsibility of all decision-makers. To be able to support the fast and plannable development of the economy, financing entities also need a predictable regulatory environment. This involves the reduction of special taxes to European levels, the abolition of the transaction levy and the drafting of legislation offering mortgage lenders the possibility to enforce their rights in an appropriate manner. The latter requires that changes are based on impact analyses, and are pre-planned and pre-agreed.

Digitalisation changes the services offered by financial institutions at an unprecedented rate. The costs of digitalisation developments will stay with the banking sector as key cost items for many years to come, while the effects of income / cost reduction will only be felt in the longer run. Digital progression can only be achieved in a safe manner if developments take place to the extent of real customer requirements, and in line with any changes in these. For this, as a core condition, we rely on deeper and more intense professional co-operation in both the Hungarian and European legislative process, and also in banking supervisory activities. We believe that human resources essential for such developments can be ensured by reducing bureaucracy and the administrative burden.

World economy is undergoing a process of change, and new challenges are diverse. It is the partnership and financial co-operation of the European Union and the North American economic zone – the world’s two most developed economic regions – that will ensure appropriate living standards and offer the possibility of on-going development. Therefore, boosting the international role the European Union plays is in our shared interest – and therefore is also in the interests of Hungary. Over the past years, the financial role of China has taken on a new dimension, while Russia’s influence in world matters has not diminished. By showing mutual respect for our differing historical development paths and cultures, we will see further economic and financial opportunities open, on the grounds of dialogue and shared interests. The continued organic development of the global economy and financial markets requires that key representatives of the world economy work in close co-operation. This can be significantly helped by international bank groups with a long tradition, which pursue intense activities in key countries of the world, and also locally, in Hungary.

As representatives of our sector, we must take a position on the direction and speed of Europe’s economic progression. International bank groups serve the entire European retail and business clientele along the same principles and in the same quality, also taking local requirements into consideration This also proves that Continental Europe can only be a strong, influential and stable area from an economic and financial aspect if it can ensure that and reduce, and in the long term eliminate the economic disparity still hindering progress. European international bank groups can facilitate this economic progress, which helps the elimination of disparity in the long term, by collecting funds, facilitating money flows and offering credit. In doing so, they have shared interests with financial institutions in Hungarian ownership, which also offer services to European standards, motivated by the sustainable development of Hungary, which is both their objective and a pre-condition to their existence.

The Hungarian Banking Association elects a new management once every three years, for which the time has come at the present General Meeting. At the General Meeting the Hungarian Banking Association HAS ELECTED XY AS ITS PRESIDENT/re-elected Mihály Patai, as its President; and HAS ELECTED/RE-ELECTED XY/András Becsei as its Vice President; XY/Henrik Auth as Chairman of its Ethical Committee. For the next three years, the following Board Members have been elected: XY/ Éva Hegedűs, Radovan Jelasity, Pál Simák, Zoltán Urbán, György Zolnai /XY.

It is by now a tradition that the Hungarian Banking Association recognises banking and partner colleagues who have made a significant contribution to the operation and development of the banking sector. In 2017 the Hungarian Banking Association’s Golden Beehive Award was granted to the following recipients:

• Anna Batka (Hungarian Banking Association) –  for her dedicated management of the accounting, taxation and data reporting work groups over more than a decade,
• dr. Attila Bógyi (OTP Mortgage Bank) – for his active and outstanding activities in the legislative process affecting the banking sector,
• Zoltán Makó (Riot Police; National Bureau of Investigation) – for his outstandingly effective efforts in preventing and combating bank card fraud,
• Gyöngyi Németh Szűcs (Unicredit Bank) – for her outstanding efforts in the area of accounting regulations,
• Gábor Weissmüller (Citibank) – for his high-quality professional contribution to the prevention and combating of financial fraud.

Budapest, May 12, 2017

Hungarian Banking Association

The Banking Association held its annual General Meeting, where, in addition to the participation of the leaders of financial institutions and Mihály Varga, Minister for National Economy, the deputy governors of the Magyar Nemzeti Bank (the central bank of Hungary) were also present.

During the General Meeting, the leaders of the Hungarian Banking Association’s member institutions agreed to issue the resolution below:

Changes in the global economy and financial markets have highlighted the fact that restoring trust in the financial system is a task of key importance. To achieve this, transparent and predictable financial regulation should be provided for clients, investors and market actors. Yet, it has to be done in a sector where profits continue to decrease in the midst of exceptionally low interest rates, and where meanwhile sectoral tax burdens are excessively high. Consequently, the profitability of the domestic banking sector does not reach the internationally required minimum level.  In his presentation, Mihály Patai, president of the Hungarian Banking Association, highlighted that the leaders of the Hungarian banking sector have faith in the balanced development of the Hungarian economy, and can play an even more active part in its promotion and stimulation, if granted the proper regulatory and social environment. The letter of intent issued in February, 2015 and constructive work together with the government established a new pillar of trust and brought a positive outlook to the sector and investors for the future. Collaboration in the following period was able to start because of this newly reinforced pillar.

The credit institutions sector is an integral part of the economy: if one is successful, so is the other. We welcome the fact that in 2016, according to contracts, the cutting of taxes which were levied on banks as part of crisis management was started. Yet, financial institutions remain among those who pay the highest taxes in Hungary: several hundred billion forints annually. The operational environment of the banking sector has a direct impact on the activity of the real economy as well. Satisfying general business and social expectations for predictability serves as the basis for further development.  

Housing financing is traditionally a central element of retail banking activities.  Relying on the Family Housing Allowance Scheme, based on the Hungarian population’s size and demographic situation, the banking sector is ready to, and capable of financing the building of new homes with the traditional tools of credit institutions, where this is needed.  

As a result of the economic crisis, external financing noticeably increased among large corporations at the expense of domestic lending. Growth was achieved in credit portfolio among small and medium enterprises, due mainly to central bank schemes and to the programs of state financial institutions responsible for SME lending. Looking ahead, we expect small and medium enterprise portfolio to grow significantly with increasing credit demand, aided by low interest rate levels, reduced credit margins and the new central bank schemes as well.

The uniform regulation of the European bank community presents a new competition, where capitalization and cost efficiency will determine how the market changes. These changes will also impact the Hungarian banking sector, since we are connected through proprietors. This is why we are against over-regulation and promote the containment of excessive capital requirements and liquidity standards. All current member countries of the European Union – including Great Britain –  are needed to  have the European financial market operate and further develop. At the same time, expanding the Union’s market further South is preferable, in order to augment the weight of the Central Eastern European region – this would strengthen the regional role of the Hungarian money market.

As is tradition, at the General Meeting the Hungarian Banking Association awards those colleagues from member banks who have significantly contributed to the operations and development of the banking sector. In 2016, the recipients of the Hungarian Banking Association’s Golden Beehive Award are:

• Dr. József Baki (FHB Bank) – for his work on the implementation of data protection and the regulation on bank secrets;
• Dr. Bálint Csere (OTP Bank) – for his work on settlement and setting up personal insolvency adequately for credit institutions;
• Zoltán Horváth-Szladek (Erste Bank) – for  his support in the elaboration of personal insolvency and the pertaining implementing decrees;
• Gabriella Kárpáti (Eximbank) – for her professional leadership of the EXIM working group;
• Péter Tódor (Budapest Bank) – for his work in preparing the practical application of the forint conversion of loans;
• Dr. Vanda Toma (CIB Bank) – for putting into practice the laws on FX loan settlements.

April 8, 2016, Budapest

Hungarian Banking Association