Nowotny Says Hungary Must Realize It Needs Solvent Banks
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European Central Bank Governing Council member Ewald Nowotny called on Hungary to be mindful of its economy’s needs when inflicting a fresh round of losses on banks including units of Austrian lenders.
Nowotny, who also is the governor of the Austrian central bank, identified Hungary as one of the “problem areas” of Austrian banks, which are among the biggest in the former communist part of Europe. The “major exposure” of the lenders, which include Erste Group Bank AG, Raiffeisen Bank International AG and UniCredit Bank Austria AG, make the neighboring country a “more sensitive issue” than even war-torn Ukraine, he said.