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Hungary’s Bank Industry Loss ‘Big Problem,’ Szasz Tells Nemzet

The Hungarian banking industry’s loss last year threatens lenders’ ability to manage risks in the economy, Karoly Szasz, chairman of the financial market authority, told daily Magyar Nemzet.

“The banking sector must be profitable to ensure the availability of capital that’s necessary for banks to manage risks in a stable and secure manner,” Szasz told the Budapest-based newspaper. “This has now come under threat.”

The capitalization of the industry would be “very important” to boost Hungary’s regional competitiveness, Szasz said, adding that banks’ liquidity was “appropriate.”

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