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Economy and Banking Sector of Hungary

Financial Market Development

Financial Market Development
4.3 (max 7.0), 45th out of 138 countries
Banks' Soundness
4.7 (max 7.0), 74th out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Hungary is scored 4.3 out of maximum 7.0 and ranked 45th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.7 (39th place).

Financial Market Development in Hungary.

Chart 1. Financial Market Development in Hungary. Source: WEF.


Soundness of banks is scored 4.7 bringing Hungary into the 74th place.

Soundness of Banks in Hungary.

Chart 2. Soundness of Banks in Hungary. Source: WEF.

Further Information

Banking Focus

Banks in Hungary are mainly focused on the following areas:

  • retail banking
  • universal banking
  • corporate and investment banking

Banking Supervision

Magyar Nemzeti Bank

Banking Sector Structure

Number of Banks
70
Consolidated Assets (2018)
123.51 bln EUR  (+2.83%)
Recent Changes (2018)
new banks: 0, closed banks: 9

Currently there are 70 credit institutions operating in Hungary.

In 2018 consolidated banking assets in Hungary were 123.51 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.

Consolidated banking assets in Hungary.

Chart 3. Consolidated banking assets in Hungary.

Recent structural changes (2013 - 2018) of the banking sector of Hungary are summarised in Table 1.

201320142015201620172018
Number of Opened Banks006200
Number of Closed Banks005234319

Table 1. Recent structural changes in the banking sector of Hungary.

The list of the most recently opened banks in Hungary is provided in Table 2.

NameStart Date
K&H Jelzálogbank Zrt (new)October 2016
ERSTE Jelzálogbank Zrt (new)July 2016
AEGON Magyarország Lakástakarékpénztár Zrt (new)August 2015
Bank of China Limited Magyarországi Fióktelepe (new)August 2015
DUNA TAKARÉK BANK Zrt (new)August 2015
Deutsche Bank AG Magyarországi Fióktelepe (new)August 2015
ERSTE Lakástakarékpénztár Zrt (new)August 2015
Polgári Bank Zrt (new)August 2015
 

Table 2. The most recently opened banks in Hungary.

All the credit institutions operating in Hungary can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Banks23
Branches of foreign banks9
Central banks1
Credit unions1
Mortgage banks4
Savings banks32

Table 3. Number of banks by category in Hungary.

There are 9 branches of foreign banks from 7 different countries in Hungary. Table 4 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
 France3
 Portugal1
 Ireland1
 Netherlands1
 Austria1
 China1
 Germany1

Table 4. Number of branches of foreign banks in Hungary grouped by country of origin.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Hungary are summarised in Table 5.

Scheme Participants
all credit institutions operating in Hungary (including branches of foreign banks)
branches of Hungarian banks abroad
Eligible Depositors
natural persons
  • citizens of Hungary
  • residents of Hungary
  • foreign citizens
  • foreign residents
  • sole entrepreneurs
legal entities
  • companies
  • associations
  • foundations
Non-Eligible Depositors
investment funds
insurance institutions
investment firms
Covered Accounts
current accounts
savings accounts
time deposit accounts
deposit certificates
payment accounts
Non-Covered Accounts
pension fund savings
interest bearing shares
cooperative shares
investment trust shares
Covered Currencies
all currencies, namely
  • HUF (Hungarian forint)
  • foreign currencies
Maximum Protected Amount
100,000 EUR
Temporary High Balance
150,000 EUR
Paid In Currency
HUF

Table 5. Deposit guarantee scheme in Hungary.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Hungarian forint)
Baa1 (lower medium grade)
Foreign Currency
Baa3 (lower medium grade)

Local currency (Hungarian forint) deposit ceiling for Hungary is set to Baa1 (lower medium grade), foreign currency deposit ceiling is Baa3 (lower medium grade).

Deposit Rates

Average Deposit Rate (Feb 2019, HUF)
0.20 %  (Jan 2019: 0.21 %)
In February 2019, an agreed annualised deposit rate in local currency (Hungarian forint) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.20%.
Deposit Rates in Hungary.

Chart 4. Deposit Rates in Hungary. Source: ECB.