|Financial Market Development|
|4.3 (max 7.0), 45th out of 138 countries|
|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).
Chart 1. Financial Market Development in Hungary. Source: WEF.
Soundness of banks is scored 4.7 bringing Hungary into the 74th place.
Chart 2. Soundness of Banks in Hungary. Source: WEF.
Banks in Hungary are mainly focused on the following areas:
|Number of Banks|
|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.
Chart 3. Consolidated banking assets in Hungary.
Recent structural changes (2013 - 2018) of the banking sector of Hungary are summarised in Table 1.
|Number of Opened Banks||0||0||6||2||0||0|
|Number of Closed Banks||0||0||52||34||31||9|
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.
|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.
|Category||Number of Banks|
|Branches of foreign banks||9|
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 Origin||Number of Branches|
|Maximum Protected Amount|
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:
All these details about deposit guarantee scheme in Hungary are summarised in Table 5.
Table 5. Deposit guarantee scheme in Hungary.
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)|
|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).
|Average Deposit Rate (Feb 2019, HUF)|
|0.20 % (Jan 2019: 0.21 %)|
Chart 4. Deposit Rates in Hungary. Source: ECB.