Individuals In Hungary Hoard Cash, Shun Banks
- 3 Apr 2015 9:00 AM
Individuals have closed over 430,000 bank accounts over the last two years and 280,000 in 2014 alone, reports Világgazdaság. As a result, the number of private bank accounts dropped to 9.4 million, the lowest figure since 2010.
The decline was attributed to the financial transaction tax introduced in 2013, said Erika Marsi, deputy-head of Bankárképzõ, a leading training institute for banks.
Many private individuals have closed their infrequently used accounts to save money. For the same reasons, many employees and pensioners are choosing to be paid in cash.
This trend over the past two years has led to a 32% increase in the cash held by private individuals, amounting to Ft 3.13 trillion, or on average Ft 760,000 per household.
Source: Hungary Around the Clock
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