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Feb 15, 2017

Hungary's central bank to focus on making mortgages more affordable

The National Bank of Hungary’s deputy governor said the bank wanted to ensure a fast expansion of mortgages in the next few years

Hungary's central bank will focus on making mortgages more affordable, it has been revealed.

Márton Nagy, the National Bank of Hungary’s deputy governor, told Magyar Hirlap that the bank will focus on the mortgage market which it sees as outdated and stagnant while its products are too expensive.

According to MTI, Nagy said the bank wanted to ensure a fast expansion of mortgages in the next few years.

Many banks avoid competitive rates as they guard their profitability, he said, adding there is insufficient price competition on the Hungarian market. And by international comparison, Hungarian banks slap on too many extra charges.

Nagy said there are three issues that can be addressed. First, it is hard for consumers to compare mortgage products. Second, changing banks involves a lot of red tape and expenses. Third, the Hungarian banking system is inefficient compared with its international peers.

He said banking in the country should be made more efficient and cheaper. Also, lawmakers should adopt new and “healthy” rules in the area of digitalisation, and the NBH is working on preparing a package of regulations for governing its operational framework.