The banking association argues in favor of revising the interest rate stop

As written, governments and central banks have introduced stimulus programs to reduce the negative economic impact of the coronavirus epidemic, and commercial banks have increased their market activity. As a result, the global economic downturn has been avoided, but inflationary pressures have emerged worldwide.

Both the Hungarian government and the central bank supported the development of the economy with innovative solutions, thus expanding the family support system, strengthening SME lending and the issuance of corporate bonds, and launching the Green Home program for the population. These were successfully conveyed by the banking sector to customers, they were reminded.

They also pointed out that due to the sharp rise in inflation in the autumn of 2021, the government imposed an interest rate freeze on floating-rate retail mortgages as part of price measures. “While these non – market instruments protect consumers from the effects of inflation in the short run, maintaining them in the longer term will lead to distortions and thus distortions. For real economic growth and competitiveness

it is desirable to restore market conditions

the statement states.

It was emphasized that economic growth above the EU average requires an active and strong Hungarian banking sector. The banking sector has been able to further increase its lending activity, fundraising capacity, government securities and strengthen its capital position over the past year. The banking association is confident that the banking sector, in cooperation with the government and the central bank, will continue to be a stable engine of economic growth. As a result of the cooperation, the country’s ability to attract capital may increase, confidence in banks may be further strengthened, all of which may together improve the country’s international recognition and lead to an appropriate rating.

The topic of interest rate stops also played a central role in the Lending Conference held at Portfolio Week, and even domestic bank leaders expressed their views on current financial issues in our podcast.

Cover image source: Getty Images

Source: – Bank by

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