This persistently low profitability may prompt some large, foreign-owned banks to leave the market, the MNB said.

On another issue, the MNB recommends the introduction of private bankruptcy as well as unspecified changes that would reduce foreign-currency mortgage debtors’ vulnerability to exchange-rate fluctuations.

Noting that non-performing mortgage loans in forints and other currencies affect some 120,000 clients, to a value of Ft 900 billion, the MNB said this problem requires a complex strategy, including the introduction of personal bankruptcy.

Source: Hungary Around the Clock

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