Though Hungary’s banking system has no direct exposure to the “poison assets” at the source of the global financial crisis, the government and the National Bank of Hungary are standing behind the country’s banks, just as other EU governments and central banks are, Hungarian Bank Association chairman Peter Felcsuti said at a conference on Thursday.
NBH deputy-governor Julia Kiraly said the global financial crisis has raised financing costs for banks and pushed up risk premia.
Eva Varhegyi, who heads the Foundation to Raise Financial Awareness, which was just set up by the NBH, the Hungarian Bankers Association and student loan provider Diakhitel Kozpont to support basic financial education for ordinary Hungarians, noted that a loosening of lending restrictions in 2000 had resulted in a euphoria of borrowing. Hungarian households’ repayments now exceed 13pc of their disposable income, well over the rate in the EU and just under the 14pc rate in the US.