Hungarian Banks Pass On Cost Of Transaction Duty To Clients
- 1 Apr 2014 9:00 AM
Hungarian banks have passed on the entire cost of the financial transaction duty to their clients, according to a study by the National Bank of Hungary published on Monday. NBH department chief Lóránt Varga, one of the authors of the study, said banks had incorporated the cost of the transaction duty for bank card payments into higher annual card fees.
Varga said the pass-through of the cost of the financial transaction duty was most evident among retail clients and less so among corporate ones.
The study’s authors said it could not be determined based on data from the first half of the year whether economic players were quickly adapting to the higher costs resulting from the duty.
Banks may pass on the financial transaction duty to clients if the possibility to modify fees unilaterally in case of tax changes is specified in their contracts.
Combined net revenue from commissions and fees of Hungarian banks jumped 54.2% to 414.9 billion forints last year, NBH data show.
Source www.hungarymatters.hu
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