Hungary banks to buck the European downtrend - paper

MBH Jelzalogbank Nyrt

09/02/2016 09:58

BUDAPEST, Feb 9 (Reuters) - Growing demand and lower taxes 
mean Hungary's banks are set to grow this year, a top Hungarian 
banker said on Tuesday, contrasting with the troubles of the 
wider European financial sector.  
    Mihaly Patai, chairman of the Hungarian Banking Association, 
told the pro-government daily Magyar Idok in an interview that 
banks also expected the central bank and government to give the 
market a boost. 
    "This is a new economic cycle," he said. "The (growth) 
engine that used to be limited to EU funds and global companies 
now includes agriculture and domestic consumption."  
    That optimism contrasts with the grim start to the year for 
banks in most of Europe, where share prices have tumbled by 
around a quarter  .SX7P . Hungarian bank shares are flat so far 
this year.     
    Hungary's government had imposed one of highest levies on 
the banking sector in Europe to stabilise its budget, but has 
begun to unwind those taxes this year. 
    Patai praised the government's recent steps to boost the 
construction sector through tax cuts, cash benefits and cheap 
loans to households. 
    That could generate significant new revenues on the real 
estate market and for banks, he said. 
 
 (Reporting by Marton Dunai; Editing by Mark Potter) 
 ((marton.dunai@thomsonreuters.com; +36-1-327-4742; Reuters 
Messaging: marton.dunai.thomsonreuters.com@reuters.net)) 
 
Keywords: HUNGARY BANKING/