Despite being hampered by a challenging geopolitical and macroeconomic environment, consumer lending in Hungary will continue to grow and evolve in 2022. Government involvement and intervention was one of the key features that supported an otherwise vulnerable industry, which is suffering under the rise of inflation and interest rates.
The increasing interest rates in Hungary are making borrowers uncertain and less keen to take on credit. Whilst there was a cap on APR during 2020, this has now been lifted meaning that related expenses to lending products are very high.
The mortgage market remained relatively stable last year as COVID-19 has had a much milder impact on the property market than in the recession of 2008-2009. Nevertheless, the pandemic has brought several uncertainties to the mortgages/housing category and consumers with this type of loan.
The competitive landscape of the Hungarian bank market is undergoing concentration thanks to the merger of three major operators, namely, Budapest Bank, MKB Bank and Takarékbank. The first two players merged during spring 2022 under the MKB Bank Nyrt brand name, with Takarékbank set to join them and complete the merger in 2023.
Over the forecast period, it is likely that the unprecedented growth in inflation and the threat of a recession or underperforming economy will negatively impact the Hungarian lending market. There could be a growing share of non-performing loans if the economy slows down with a larger proportion of households unable to repay their loans.
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Understand the latest market trends and future growth opportunities for the Consumer Lending industry in Hungary with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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Aggregate of Consumer Credit and Mortgages/Housing. Gross Lending: The total value of loans advanced by institutions in a given year; data refers to single year only. Outstanding Balance: The collective amount owed by borrowers at the end of a given year; data refers to the cumulative impact of debt.See All of Our Definitions
This report originates from Passport, our Consumer Lending research and analysis database.
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