Many banks avoid competitive rates as they guard their profitability, he said, adding there is insufficient price competition on the Hungarian market. And by international comparison, Hungarian banks slap on too many extra charges.

Nagy said there are three issues that can be addressed. First, it is hard for consumers to compare mortgage products. Second, changing banks involves a lot of red tape and expenses. Third, the Hungarian banking system is inefficient compared with its international peers.

He said banking in the country should be made more efficient and cheaper. Also, lawmakers should adopt new and “healthy” rules in the area of digitalisation, and the NBH is working on preparing a package of regulations for governing its operational framework.

Nagy added that central bank experts will be providing responses to the three areas outlined in the next few months.

Republished with permission of Hungary Matters, MTI’s daily newsletter.