The head of EBRD attacked the idea of national targets for ownership of banks, after Hungary signalled that it may take a more protectionist stance against foreign lenders.
Hungarian Prime Minister Viktor Orban said this month that he expected 60 percent or more of the country's banking sector to end up under domestic ownership, a target that means more foreign-owned banks would have to sell up, possibly at reduced prices.
Addressing an economic conference November 24, the European Bank for Reconstruction and Development (EBRD) President Suma Chakrabarti said some rebalancing of bank ownership among international and local investors in central and eastern Europe would be healthy and welcome provided it follows the market-based process of some investors deciding to exit and local entrepreneurs stepping up to fill the gap.
"However, and I want to emphasise this: we at the EBRD don't believe in targets for national ownership in any sector," he said without specifically mentioning Hungary.
Chakrabarti said he thought that capital should continue to flow from advanced to emerging economies in Europe, which he described as good business for both sides.
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