Jelasity Radován: the general moratorium must be lifted!


Jelasity Radován said:

  • The last year has been a man-trying for the banking sector, but it has stood the ground: it has helped and supported the economy like never before.
  • The Hungarian Banking Association expects a rapid rebound in GDP, and the chances of a V-shaped recovery are good. The first quarter came as a big surprise, with 7% economic growth surprising everyone.
  • 2020 was the first year of a crisis in which the banking sector disbursed more credit than the year before. There was only a decline in retail lending due to personal loans. Credit crunch significantly supports economic growth.
  • In the first four months (including the moratorium), the loan portfolio of the banking sector has already grown by 8%, so the 2020 trend may continue in 2021. Government programs provide impetus to further expand lending. Thanks to the banks for the help of the central bank and the government, without them it would not have been possible.
  • The banking sector also welcomed the moratorium on repayments, despite being the most generous with customers and the most expensive for banks by international standards. Banks are currently waiting for how to proceed with this.
  • The moratorium in Hungary is already by far the most favorable (former) in the region: with automatic participation, the longest duration, extension of maturity, no increase in installments and no capitalization of interest.
  • At the end of December 2020, a loan of HUF 6,100 billion was in moratorium, which is higher than the HUF 5,300 billion of own funds. Last year’s provisioning was HUF 200 billion in the banking sector, but it was not evenly distributed.
  • The majority of moratorium customers do not pay because they do not know, but because they do not want to: 53% of retail moratorium customers increased their income last year, and 93% of SME customers could certainly continue to repay, according to a MNB survey. 12% of corporate loans and 10% of retail loans are considered risky.
  • Banks cannot support a moratorium that would not pay tens of thousands or hundreds of thousands to the detriment of the banking sector, even though they could. At Erste, for example, 20% of customers have more money in their checking account than their loan portfolio. Banks support customers even without the moratorium.
  • The tasks of the banking sector for the next 12 months are: to support the V-shaped recovery through lending, to manage customers in need of the moratorium, to expand digitally available loan products, and to implement a digital package quickly.

Cover image: Ákos Stiller


Source: Portfolio.hu – Bank by www.portfolio.hu.

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