Economy minister welcomes positive trends in banking sector

Budapest (MTI) – Economy Minister Mihály Varga said he welcomed positive trends in lending in Hungary and noted that last year banks started to post profits after suffering years of losses.

Addressing a meeting of the Banking Association on Friday, Varga said lending growth is mainly due to a rise in mortgages. New household loans rose by 34 percent last year, a statement from the economy ministry said.

Varga said tasks ahead included maintaining the pace of growth in the sector. To meet this aim, the government seeks to accelerate the take up of EU funding, encourage investments and home construction, and stimulate lending activity, the statement said. The banking tax on the sector was halved on Jan. 1 this year in accordance with an agreement with the European Bank for Reconstruction and Development (EBRD), and it will continue to diminish in 2017, it said.

Members of the association welcomed that the government started reducing the bank levy this year, but added that financial institutions remain among those who pay the highest taxes in Hungary.

Mihály Patai, head of the association, said the leaders of the banking sector have faith in the balanced development of the Hungarian economy, and can play an even more active part in its stimulation if granted the proper regulatory and social environment.