News and announcements
Proposal for an EU "bad bank" put forward
The European Banking Authority would like to create an asset management company to buy up some of the nearly EUR 1,000 billion worth non-performing loan portfolio of euro zone banks and use freed-up lending capacity to awaken the slumbering economy of the euro zone.
A new era may dawn for NPL management
NPL Initiative website will be information hub for emerging Europe’s banking sector
Non-performing loans a significant challenge in Central, Eastern and South-Eastern Europe. A new website will help strengthen emerging Europe’s banking system by sharing information about NPLs (non-performing loans) and ways of countering the risks that they represent.The website has been launched under the broader umbrella of the Vienna Initiative, itself a framework for enhancing the financial security of emerging Europe backed by the European Commission, EIB, EBRD, IMF and World Bank Group.
Twenty-three financial institutions registered for MARK’s asset purchase programme
Twenty-three financial institutions, including all banks with the largest distressed commercial property portfolio, registered to MARK’s asset purchase programme with over HUF 300 billion gross exposure, representing HUF 90-125 billion at transfer value. The registration will be followed by a few months of economic and legal due diligence.
IMF welcomes the establishment of MARK Zrt.
The International Monetary Fund (IMF) welcomes the establishment of MARK Zrt., the “bad bank”, but notes that additional measures are needed to promote lending. The IMF staff completed its usual annual consultation with Hungary in mid-February (pursuant to Article IV of IMF’s Articles of Agreement, the organisation holds bilateral annual discussions with each member state). The detailed report was published on 28 April.
S&P is also positive about MARK’s intentions
Standard & Poor's latest regional sector analysis, which has been presented in London, points out that the activity of MARK Zrt. specialised in the acquisition of non-performing loans from the Hungarian banking system may enhance the lending willingness and capacity of the banks.
Head of OTP Bank praises MARK
According to the head of OTP Bank, in the case of non-performing corporate loans MARK Zrt. is a very good institution to take over distressed assets, and OTP Bank is in contact with them too. As far as retail loans are concerned, Sándor Csányi gives preference to collection by the bank itself through OTP Faktoring.
Fitch: MARK serves as a useful opportunity
In part due to the conversion of foreign currency denominated loans and the cleaning of MKB Bank’s portfolio, the stock of non-performing loans (NPL) of Hungarian credit institutions fell by 26% last year. NPL ratios were nevertheless still very high, with the gross value of distressed loans equalling HUF 1,734 billion at the end of 2015. However, Fitch Ratings envisages improvement in its latest analysis. It finds the activity of MARK Zrt. especially useful, since it offers banks the opportunity to get rid of their problematic loans that emerged in the aftermath of the financial crisis.