The central bank imposed a HUF 25 million fine on Duna Takarék Bank Zrt. due to problems discovered in the fraud prevention system, project lending, monitoring, recovery activities, impairment training and IT, the Magyar Nemzeti Bank (MNB) announced.on Tuesday.
In the announcement, it was emphasized that the revealed errors do not affect the reliable operation of the bank. They detailed that the MNB discovered deficiencies in keeping records for monitoring suspected fraud cases, and also found the credit institution’s cloud-based monitoring system for filtering out unusual transactions inadequate.
In addition, objections were also raised in the area of customer qualification and project lending practice and regulation.
According to the MNB, the bank’s credit assessment process and problematic case management, as well as the regulation and data provision of project financing, were not fully legal. The central financial institution also found that the credit institution does not have uniform documentation in the field of impairment, and the accounting classification process based on the estimation of expected losses is incomplete. In addition, some IT updates were not installed, and user rights were not handled correctly in all cases. When determining the fine, it was considered an aggravating circumstance that some violations carry a significant risk, and that several problems had already arisen during the previous supervisory investigation. At the same time, the MNB assessed as a mitigating circumstance the fact that the credit institution already eliminated several deficiencies during the investigation or indicated its intention to improve them – read the statement of the central bank.
MTI
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