Hungarian economists wary of foreign bank branches


An increase in the number of foreign bank subsidiaries relative to branches in central and eastern Europe (CEE) poses threats to those banks' home and host countries, according to a working paper published by the Central Bank of Hungary today.

In Transforming subsidiaries into branches – Should we be worrying about it? Péter Fáykiss, Gabriella Grosz and Gábor Szigel find that at present, branches only possess a "small" market share and as such pose only a "rather moderate" threat to Hungarian

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