The central bank has already issued a statement regarding the fact that Revolut still has problems that need to be solved. Most recently, they did this just after an article in Index.
Now they issued another statement, in which they wrote: “The Lithuanian-based Revolut Bank, operating as a cross-border service provider, has started actively collecting deposits, but it still does not apply for a subsidiary bank license in Hungary, and therefore does not join the domestic deposit insurance system. The bank’s domestic customers can still settle their settlement or fraud disputes abroad, in Lithuanian or English.”
A solution to all of this would be if Revolut operated as a domestic subsidiary bank, with its headquarters in Hungary, with sufficient capital, and with the OBA’s deposit guarantee
wrote the central bank.
As explained, according to a February announcement, Revolut will henceforth offer its Hungarian customers a forint-based deposit with different interest rates depending on the rate package. They reminded that the company already obtained a deposit collection license valid for Hungary years ago in Lithuania, but only this year did it start “actually actively collecting deposits” in Hungary.
At the same time, the central bank warned that, in parallel with the start of deposit collection, “there has been no further change in the legal status of Revolut Bank, i.e. it has not started its branch operations, it continues to offer electronic payment services and now deposits as well as a cross-border institution in Hungary”.
This means that not the Magyar Nemzeti Bank (MNB), but rather the EU member state that authorizes its activities according to its seat, i.e. the Central Bank of Lithuania, supervises compliance with consumer protection regulations, while – given the size of the institution – its business reliability will be monitored from January 1, 2024 by the European It is controlled by the Central Bank
– they said in the statement.
They also drew attention to the fact that “while there is no progress at home, the company – according to its announcement a few days ago – is planning to install physically available bank branches in France, as their appearance can contribute to increasing customer confidence.” According to the MNB’s point of view, the situation would be exactly the same in Hungary, in the case of Hungarian customers”.
Since Revolut Bank does not operate with a domestic license and capital, or as a subsidiary bank supervised by the MNB, it remains outside the protective umbrella of the Hungarian National Deposit Insurance Fund (OBA). In the event of a possible problem, the Lithuanian deposit insurance system, rather than the domestic one, would be suitable for approx. for the money of one million domestic Revolut customers
they added.
“However, in the case of subsidiary banks in Hungary, the Hungarian OBA undertakes this guarantee. At the same time, the available assets of the Lithuanian deposit insurance company (DII) were, and still are, significantly lower than the assets of the OBA, while Revolut’s total number of customers exceeded 18 million”, they added, and then also indicated that “one settlement, consumer, deposit insurance or in the case of a fraud-related problem, in addition, the affected domestic consumers (in addition to the international conciliation procedure) can basically only seek legal redress in Lithuania – in Lithuanian or English – in connection with their own cases.”
As the MNB has emphasized before, Revolut Bank’s operation as a branch would strengthen domestic consumer protection supervisory authority, however, the protection of domestic customers’ funds would still be subject to the rules of the Lithuanian deposit insurance. Because of all this, Revolut Bank could strengthen its commitment to domestic customers by operating as an independent Hungarian subsidiary bank, with a domestic seat and capital, joining the Hungarian deposit protection system
– concluded the statement.
Revolut’s terms and conditions will change soon
Revolut also previously announced that they would modify their personal contract terms at several points. The company announced the details back in January, but the changes will only come into effect in the next few days, from March 11. Thus, customers should pay attention to these changes as well.
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2024-03-07 23:11:53