Banking regulation—Hungary—Q&A guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Banking regulation—Hungary—Q&A guide
  • 1. What are the principal governmental and regulatory policies that govern the banking sector?
  • 2. What are the defining characteristics of a bank to be caught by the banking laws and regulations? Is non-bank fintech regulated differently?
  • 3. Do the rules vary depending on the size or complexity of the banking institution?
  • 4. Summarise the primary statutes and regulations that govern the banking industry.
  • 5. Which regulatory authorities are primarily responsible for overseeing banks?
  • 6. Describe the extent to which deposits are insured by the government. Describe the extent to which the government has taken an ownership interest in the banking sector and intends to maintain, increase or decrease that interest.
  • 7. Which legal and regulatory limitations apply to transactions between a bank and its affiliates? What constitutes an ‘affiliate’ for this purpose? Briefly describe the range of permissible and prohibited activities for financial institutions and whether there have been any changes to how those activities are classified.
  • 8. What are the principal regulatory challenges facing the banking industry?
  • 9. Are banks subject to consumer protection rules?
  • More...

Banking regulation—Hungary—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to banking regulation in Hungary published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: Nagy és Trócsányi—Zoltán Varga; Zóra Lehoczki

1. What are the principal governmental and regulatory policies that govern the banking sector?

The main elements of regulatory policies related to the Hungarian banking sector are:

  1. governmental control (including authorisation and supervision);

  2. financial and monetary stability;

  3. strict capital and risk-management requirements as well as organisational regulations;

  4. insurance of deposits; and

  5. regulation of information in the interest of the protection of bank secrecy, transparency and consumer protection.

2. What are the defining characteristics of a bank to be caught by the banking laws and regulations? Is non-bank fintech regulated differently?

The general rules applicable to banks are set forth by Act CCXXXVII of 2013 on credit institutions and financial enterprises (the Banking Act). Banks are operating in the forms of business associations, hence the general rules applicable to the foundation and operation of legal persons established by Act V of 2013 on the Civil Code apply to them as well. However, the provisions explicitly applicable to banks are provided for by the Banking Act. Banks are credit institutions the business of which is to carry out the activities of (1) taking deposits and receiving other repayable funds from

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