Hungarian Bank Freeze Ends: OTP Bank First to Cut Retail Charges
The National Bank of Hungary (NBH) and the Hungarian Banking Association have recently come to an agreement that will benefit customers by making banking costs simpler, more transparent, and cheaper. In a statement released by Mihály Varga, the central bank governor, on Tuesday, it was revealed that lenders have agreed to waive fees on basic retail accounts until headline CPI remains below 4 percent for three consecutive months. This move is in line with the upper threshold of the central bank’s tolerance band.
In addition to waiving fees, banks have also agreed to inform their clients about more affordable account packages that may better suit their needs. They will undertake a customer information campaign detailing and comparing account costs, utilize the central bank’s account package calculator on their websites to assist clients in selecting the most suitable account, and allow clients to close old accounts online, as per NBH’s statement.
One of Hungary’s largest commercial lenders, OTP Bank, has also announced steps to reduce retail banking fees in alignment with government initiatives to combat service price inflation. Following discussions between the National Economy Ministry and the Hungarian Banking Association, OTP has agreed to freeze retail account and bank card fees until June 30, 2026.
Moreover, in response to inflation-linked fee increases for retail clients introduced on March 1, OTP will be extending discounts and reducing banking costs by nearly HUF 2 billion over the next twelve months starting from May 1. This move is aimed at rolling back retail banking fees to levels seen at the beginning of 2025, as requested by the national economy minister.
Overall, these initiatives and agreements between the NBH, Hungarian Banking Association, and OTP Bank are expected to bring relief to customers by making banking costs more affordable and transparent. Customers are encouraged to take advantage of the newly introduced measures to ensure they are getting the best possible deals on their banking services.
