Mihály Varga Consults with Banking Association on the Expansion of Corporate Lending and Curbing Cyberfraud

Budapest, 4 June 2025 – The MNB and the Banking Association had resumed consultations on the expansion of corporate lending and measures to counter cyberfraud, said MNB Governor Mihály Varga after meeting with senior representatives of the Banking Association at his office today. The Governor underscored that in addition to preserving the stability of the banking sector, the MNB’s primary objectives were to achieve a substantial increase in corporate lending, to alleviate clients’ payment transaction burdens and to ensure that banks play a more proactive role in preventing financial misconduct.

Governor Varga and the leaders of the Banking Association agreed that the Hungarian financial system was on a solid foundation, with robust resilience, ample liquidity and a strong capital position. The Governor noted that in recent months retail lending had exhibited significant growth, and thus the next critical task was to stimulate investment financing. To that end, the MNB was ready to collaborate closely with the banking sector to enhance competition in the corporate credit market. Varga added that, in these discussions, particular emphasis would be placed on supporting the SME sector and reducing payment transaction costs for both retail and corporate clients. He emphasised that in order to preserve financial system stability, it was essential for businesses to have access to more competitively priced financial products, while at the same time it was also necessary to maintain a firm focus on achieving and sustaining price stability and ensuring the stability of the financial markets. The Governor stressed that the MNB’s leadership would respond decisively to any risks threatening the Hungarian financial system and its clientele, and would thus launch a five‐point initiative to fight financial cybercrime. In implementing the ‘Five‐Strike’ plan to curb financial fraud, the Bank would rely on the support of the Banking Association. Varga recalled that the first step in the close collaboration with the banks was the agreement reached with the Banking Association in early April, on the basis of which both parties had committed to reducing retail banking fees and broadening client information and outreach.