MNB: only solution is lending now

The only rational solution on the part of banks in the current epidemic situation is lending, Nagy Márton, Vice President of the Magyar Nemzeti Bank (MNB) said at the Portfolio’s online conference on Tuesday.

In his online presentation titled The Impact of the Coronavirus Epidemic on the Hungarian Banking Sector, the Vice President pointed out: in contrast to the previous crisis, a countercyclical banking system is needed, the Hungarian banking system has the capacity to do so, with support from the government and the MNB. Procyclical banking behavior is deepening the crisis, the only rational solution is lending in the current situation. (MTI)