Budapest, June 23 (MTI) – Hungary’s Parliament on Tuesday approved amendments that will tighten oversight of financial institutions.
The amendments, drafted in the wake of failures at a number of independent brokerages, reduce the time between comprehensive reviews of financial institutions to three years from five at present.
They give the National Bank of Hungary the power to carry out inspections immediately and levy bigger fines. The amendments also raise the compensation threshold of the Investor Protection Fund (Beva) from 20,000 euros to 100,000 euros.
The amendments were approved with a simple majority, after failing to win a two-thirds vote two weeks earlier.
Lawmakers also approved on Tuesday amendments to the law on the state-owned Hungarian Development Bank (MFB) to exempt a broader range of its dealings with failed brokerage Quaestor from rules on banking secrecy.
The amendments expand the scope of data that do not qualify as banking secrets to “reveal the background of fraud committed at the Quaestor group to the public”, according to the justification of the bill.
The amendments also give the MFB greater flexibility when acquiring stakes in companies.
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