Banking and Capital Markets
The Hungarian financial system has grown into a sector offering a full range of
financial services with an advanced information technology infrastructure. The
transition to a market economy took place together with the establishment of a legal
system in harmony with that of the European Union; foreign companies, therefore, can
now expect the same legal security and regulatory environment on the Hungarian
financial markets as they are accustomed to at home.
The financial supervisory authority (www.pszaf.hu) is of international standard, and
the transfer and securities clearance systems, as well as custody services, provide full
security for Hungarian financial services.
The Hungarian Forint (HUF) has been fully convertible since the summer of 2001, and
both the Hungarian financial market and capital market transactions are entirely
liberalised.
Banks
The milestone event in the development of the current financial system was the
privatisation of the banking sector during 1995-96 when, in
addition to the
establishment of “greenfield” foreign bank branches, the majority interest of the
previously state-owned banks also changed hands and entered into foreign ownership.
As a result of these changes, financial institutions whose controlling interest is owned
by foreign professional investors constitute more than 90 percent of the registered
capital of the sector, consisting of 36 commercial banks. Only the Hungarian
Development Bank and Eximbank, two banks with special governmental functions,
remained in state ownership.
As the subsidiaries of German, Austrian, Italian, French, American, and Russian parent
banks, these commercial banks adapted their financial know-how and banking
technology to the characteristic needs of the Hungarian market; therefore, the range
of banking products and services offered, as well as their quality and the electronic
techniques used, are not really different from those used in Western European
countries. The capital supply of the owners provides stability and the necessary
security to the clients of these banks.
The banking market is otherwise quite concentrated, with 10 leading banks in keen
competition for increasing their market shares; therefore, foreign companies may
expect favourable terms and conditions in the field of financial services.
The classic commercial banking activities are also supplemented by the services of
leasing, factoring, mortgage banking, and other specialised financial services, usually
offered by companies owned by the banks.
H-1061 Budapest, Andrássy út 12.
Address: H-1368 Budapest 5, Pf. 222
Phone: +36-1 472 8100
E-mail: investment@itd.hu
Fax: +36-1 472 8101
The Budapest Stock Exchange (BÉT)
The Budapest Stock Exchanged (re-)opened in the summer of 1990 as the first stock
exchange of the Central and East European region. The number of companies offering
investment services is 48, with the majority owned by commercial banks. More than
100 asset management and investment funds now also compete for private and
corporate client investments.
Insurance companies
The current number of insurance companies is 31, and they offer a full range of
insurance products. Institutional pension funds and insurance companies are exhibiting
especially quick development.
Related laws and regulations
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Act 93/2001 On the Elimination of Foreign Exchange Restrictions and the
Amendment of Related Laws
Act 112/1996 On Credit Institutions and Financial Enterprises
Act 96/1995 On Insurance Companies and Insurance Activity
H-1061 Budapest, Andrássy út 12.
Address: H-1368 Budapest 5, Pf. 222
Phone: +36-1 472 8100
E-mail: investment@itd.hu
Fax: +36-1 472 8101