Hungarian central bank recommends OTP take precautions, cites Russian unit (updated)

OTP Bank Nyrt.

29/05/2024 17:50

(Adds details in paragraph 3)
       BUDAPEST, May 29 (Reuters) - The Hungarian central bank
has recommended that OTP Bank  OTPB.BU  take several
precautionary measures related to its Russian unit, it said on
Wednesday.
    It said risks may arise from Russian activity due to
sanctions on Russia and different compliance regulation, so OTP
should draw up an action plan approved by its board of directors
and report regularly on its implementation.
    The central bank, which is also in charge of financial
sector supervision in Hungary, said OTP should wind down its
corporate loan stock in Russia, keep its retail loan stock
stable and reduce its stock of retail deposits.

 (Reporting by Gergely Szakacs; Writing by Anna
Wlodarczak-Semczuk; Editing by Timothy Heritage and Richard
Chang)
 ((anna.wlodarczak@thomsonreuters.com))