Budapest, March 4 (MTI) – The National Bank of Hungary on Wednesday revoked the licence of brokerage Buda-Cash and initiated its liquidation.
Shortfalls revealed by the central bank and data compiled by an oversight commissioner show the brokerage cannot settle a large amount with its clients. The clients will be compensated from the Investor Protection Fund (Beva).
The NBH suspended the activities of Buda-Cash last week and initiated a criminal procedure. It also revoked the licences of DRB Bank group members, which have close ties to Buda-Cash.
The scandal is thought to involve some 100 billion forints.