Doing business and banking in Hungary can be a hugely successful venture. Foreign investors own about half of Hungary’s businesses and firms. Since the breakup of the Soviet Union, the economy in Hungary has fluctuated greatly; early economic struggles led to privatization of most of Hungary’s main industries in the 1990s, including Hungary banks, which improved the overall economic picture.

Today banking in Hungary makes a viable business option, but before you pour money into the country, get a clear picture of the pros and cons.

1. Keep regularly abreast of goings-on in Hungary; fluctuations in the economic and political outlook influence Hungary commercial banking trends.
2. Identify your consumers and how they spend their income.
3. Know how your products or services impact consumer finances.
4. Develop close relationships with business and networking partners in Hungary; professional contacts help you gain inside knowledge on business practices and trends in Hungarian banking and business.

Action Steps
The best contacts and resources to help you get it done

Check the financial reputation for Hungary banking institutions

Before you invest your money into commercial banking in Hungary, look at the financial reputation. Financial reports tell you which banks perform better, which decreased in total assets and which Hungary banks experienced an increase in total assets. By analyzing trends, you can find banks offering a higher return for your investment.

I recommend: Erste Bank offers financial records and key performance indictors based on International Financial Reporting Standards (IFRS). K&H Bank, one of the largest banks in Hungary, provides information on activity, shareholders and management.

Look for business banking in Hungary

Like American banks, many Hungary banks offer service for individuals and businesses. Hungary commercial banks often offer services depending on the size of your business. Typically banks provide services for more than one size business.

I recommend: OTP Bank offers corporate banking for medium- to large-sized businesses, including services like online banking. MKB Bank Zrt. offers banking services like HUF and FX account, deposits and loans for small- and medium-sized businesses.

Take advantage of Hungary banks with foreign trade financing

Many banks in Hungary offer services comparable to those found in US banks. Foreign trade financing can include financing purchases or establishing credit in a foreign country.

I recommend: New York hosts a branch for Commerzbank AG, a commercial bank in Hungary with international branches, offers foreign trade financing for the purchase of HERMES-covered receivables, buyer credit and forfaiting. Calyon provides structured financing, capital markets and investment banking.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  While many Hungary banks offer services similar to US banks, always read the fine print for small alterations that translate into significant differences.
• •  Ask for clarification on unfamiliar terms and services; most mistakes result from human error rather than intentional deception.