Banks/Banking in Hungary
Banking in Hungary includes the international and local banks that contribute significantly to the Hungarian economy. Privatization of the banking sector has not influenced the banking market, and on the other hand, the banking market in Hungary is in a stable condition, besides enjoying good growth particularly from retail business sectors.
Hungary finance sector was under the control of the National Bank of Hungary as well as private banks in 1960s. Later in 1970s, the foreign trade bank took a significant role towards the market-driven economy.
The banking market in Hungary opened in 1988 for foreign investors. The Commercial Bank and the National Savings play a significant role in the financial sector of Hungary. Hungarian banking sector includes a total share of 87% of the private banks. The banking sectors of Hungary are highly influenced by national banks and giant banking corporations.
The Hungarian banking sector income is impressive and further growth is possible as the GDP share is below the international standards that promotes further growth possibilities.
The Budapest Bank tops the banks in Hungary and is the third largest bank. It is managed by the state government. This was one of the commercial banks in Hungary established after the two-tier banking system was initiated. The GE Company financially funded the Budapest Bank since 1995 and holds 99.69% total shares. This was the first bank that was successfully privatized and played a vital role in asset categorization.
The Budapest Bank provides financial services to corporate and domestic clients such that it owns 100% shares of the Budapest Fund Management, Budapest Auto Finance, Budapest Leasing and Budapest Car Fleet Management. The Budapest Bank introduced in 1998 the mobile banking services.
The top banks in Hungary include ABN Amro Bank. This bank has many branches and offer services to its customers effectively. This merger bank attracts foreign investors to the Hungarian economy and the advantage will be received by shareholders on their performance.
Banks in Hungary includes the CIB, the most influential and the fourth largest bank showing a turnover of 1000 billion Ft. This bank was launched in 1979. CIB offers extensive financial services and handles retail and corporate banking in Hungary.