Former National Banker says he quit top Hungarian bank role due to blackmail threats from central bank

András Simor, the former head of the Hungarian National Bank (Magyar Nemzeti Bank, MNB), has alleged that he was effectively forced to resign from his supervisory board role at Erste Group Bank following what he describes as “blackmail” linked to Hungary’s central bank.

Speaking publicly for the first time on the matter to ATV, Simor said he stepped down in January 2024 (just six months after his mandate had been extended) because of pressure exerted through Hungary’s banking supervision authority.

“Windowless room” meeting and alleged pressure

According to Simor, the episode began in December 2023 after he publicly criticised the central bank leadership under György Matolcsy. Shortly afterwards, Radován Jelasity, CEO of Erste Bank Hungary, approached him with what was described as a highly uncomfortable situation.

Simor claims Jelasity had been summoned to the central bank for a meeting with one of its deputy governors, who also oversees financial supervision. The meeting allegedly took place in a closed, windowless room, where the CEO had to leave his phone outside.

During the discussion, the official reportedly indicated that as long as Simor remained on the Vienna-based supervisory board of Erste Group, Hungarian banking supervision would treat Erste Bank Hungary in an “extremely strict and unpleasant” manner.

“Translated into plain terms, I call this blackmail,” Simor said, adding that in his view the alleged conduct could amount to abuse of office under Hungarian law.

Unusual inspections and mounting pressure

Simor said he initially hesitated before making a decision, but events escalated over the Christmas period. According to his account, the central bank launched a series of unusual data requests and inspections targeting the Hungarian subsidiary of Erste.

When bank employees sought clarification, they allegedly received a message implying that the situation would ease if their leadership “said the right thing” to the relevant authority.

At that point, Simor concluded that remaining in his role could harm the bank. “I was not there to damage the bank but to benefit it,” he said, explaining that he chose to resign in order to protect the institution.

ECB reaction: “We’ve never heard of this in Europe”

Following his resignation, Simor said he was contacted by senior officials from the European Central Bank, who were concerned that his mid-term departure might signal internal problems at Erste.

He told them the decision had nothing to do with the bank itself but was taken in its defence. According to Simor, the officials reacted with disbelief, saying they had never encountered such a situation in Europe.

Why no legal action?

Despite describing the case as potential criminal conduct, Simor said he has not filed a complaint. He argued that the alleged incident was carefully orchestrated in a way that left no evidence, making it easy to deny.

He also stressed that he was not the direct target of the alleged coercion, but rather, the pressure was applied through the bank’s leadership.

Erste responds cautiously

In response to the claims, Erste Bank Hungary did not confirm or deny the specific allegations to Portfolio. However, the bank acknowledged that it had recently experienced what it described as “disadvantageous” or, at times, “legally questionable” treatment.

The bank added that it would cooperate fully should any investigation be launched and expressed hope for a business environment in Hungary that ensures predictable, lawful and fair competition for market participants.

Tensions with central bank leadership

In his remarks, Simor also criticised the record of the central bank under Matolcsy, particularly underscoring Hungary’s years of high inflation, which he said contradicted the institution’s core mandate of maintaining price stability.

Watch the video below, available with English subtitles:

If you missed it: Former Hungarian central bank governor Matolcsy says allegations against him are ‘unfounded’