Buda-Cash – NBH proposes legal changes for tighter oversight

Budapest, February 27 (MTI) – The National Bank of Hungary on Friday said it would propose legal changes to tighten up oversight of the financial sector in light of the Buda-Cash debacle.

The central bank issued the statement after meeting representatives of the cabinet office, the economy and interior ministries, the Financial Stability and Liquidation Nonprofit Company, the National Deposit Insurance Fund (OBA) and the Investor Protection Fund (Beva) to coordinate related actions.

The National Bank of Hungary on Tuesday said it withdrew the licence of Buda-Cash and reported suspected criminal activity to the police. The NBH also put a limit on withdrawals at members of the DRB Bank group, which has ownership ties to Buda-Cash.

The participants at the meeting considered how the central bank, in its role as market watchdog, could better prevent similar cases of fraud.

Photo: MTI

Source: http://mtva.hu/hu/hungary-matters