Hungarian central bank deputy governor Nagy unexpectedly resigns

Hungarian central bank Deputy Governor Marton Nagy, who oversaw the bank's monetary policy, financial stability, and lending programs, has resigned, the National Bank of Hungary (NBH) said on Thursday.

The NBH said Nagy, whose six-year term on the rate-setting Monetary Council had been due to expire in September 2021, resigned as he has taken up another important leadership position. The central bank did not specify the position he was taking and a spokesman for the bank declined further comment. Nagy was not immediately reachable for comment.

He will be temporarily replaced by Barnabas Virag, the central bank's managing director in charge of monetary policy and economic analysis. The departure of Nagy, the face of the central bank who was the most active policymaker at investor meetings, conferences, and press briefings, leaves a void in key areas of policymaking.

Nagy had played an instrumental part in the central bank's unconventional monetary easing campaign, its lending schemes to provide companies in Hungary with cheap loans, as well as a corporate bond program to boost the local capital market. He had also been a vocal advocate of bank sector consolidation, repeatedly saying there were too many large, universal banks in Hungary for the size of its market.

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