The information was contained in the BankAdat (Bank Data) data base set up by the association in 2004 or thereabouts.

GVH claims that the information includes business secrets which, if shared by banks, can harm competition and discourage innovation.

When setting the fine, the competition authority reportedly took into consideration the fact that the participating banks shut down the data base of their own accord after GVH launched its investigation. However, the authority also considered that the participants covered 80 percent of the domestic banking market.

Online daily Index.hu reports that the Banking Association has asked for permission to pay the fine in installments because annual fees are not sufficient to pay the entire amount. Should the Banking Association fail to pay, GVH reserves the right to collect the money from the following participating banks:

Budapest Bank, CIB, Erste, K&H, MKB, OTP, Raiffeisen, UniCredit, Magnetissimo, Banif, Commerzbank, Quaestor, FHB Kereskedelmi Bank, Gránit, KDB, Cetelem, Takarékbank, Sberbank, Merkantil, Porsche, Sopron Bank, Erste Lakástakarék, FHB Jelzálogbank, Fundamenta, OTP Jelzálogbank, OTP Lakástakarék, UniCredit Jelzálogbank, Axa, BNP, Citibank, Crédit Agricole, Deutsche Bank and ING.

For reasons not disclosed by GVH, neither the Hungarian Development Bank (MFB) nor the EximBank were penalized despite having access to the data base. Nor did GVH penalize the Kinizsi Bank or the Mohács Takarék Bank.

The HUF 4.015 billion fine is the third-largest meted out by GVH in the past five years, reports Index.hu.

In 2013 twelve commercial banks were fined a total of HUF 9.5 billion for allegedly conspiring to prevent FX mortgage loan holders from paying off loans at a favorable exchange rate as mandated by parliament.

In summer 2010 several railway construction companies were fined a total of HUF 7 billion (USD 24 million) for collusion. Representatives of the companies had met at a Budapest hotel in 2004 for the express purpose of divvying up future railway construction contracts awarded by the Hungarian State Railways. The “smoking gun” was a protocol of the meeting prepared by Vasútépítők Kft. CEO István Szijjártó, the father of Hungary’s current Foreign Minister Péter Szijjártó.

After a raid yielded István Szijjártó’s own hand-written notes about the meeting, he agreed to cooperate with authorities. In this way Vasútépítők Kft. was the only cartel member not to be penalized, despite Szijjartó being one of the main instigators.

Source: The Budapest Beacon

The Budapest Beacon is a media partner of XpatLoop.com