"We should have curbed excessive foreign currency lending"

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Júlia Király, Head of the Department of Economics and Finance at IBS and former Deputy Governor of the National Bank of Hungary, gave an interview to Forbes (August, 2014).

 She was talking about the burning issues of the foreign currency lending crisis and its current implications, as well as the role of women in corporate leadership. Below please see an English language summary of the interview conducted by Gábor Ács.


Júlia Király served as one of the two Deputy Governors of the National Bank of Hungary between 2007 and 2013, when she decided to resign from her position. She collected experiences during a period of international bank crises, the bankruptcy of the Lehman brothers, the Icelandic financial crisis. Hopefully, in the near future we can read about her personal insights in detail as she is writing a book about her experiences. According to Király, although the primary risk factors of foreign currency lending were visible early on, Király says that internationally the banking industry did not see the imminence of the catastrophic chain of events marked by the Lehman bankruptcy; she also points out the unfavourable domestic environment of the National Bank of Hungary and argues, “We should have slowed down foreign currency lending.” Apart from the turbulent times at the helm of the National Bank of Hungary, Király also discusses the role of women in corporate leadership. A few weeks ago she appeared as a face of Capillano Woman. In the closing section of the interview she is talking about the chances of women in the top management of corporate life. The key concept here is tolerance, she thinks, to acknowledge and accept both difference and similarity among men and women, very much in the spirit of how racism, homophobia should be addressed. To put nice principles into practice, she went to participate in the Budapest gay pride parade for the first time this year. Source -“Akkor Izland van.” Forbes, 2014, augusztus, 84-88. Read the entire article here Forbes_2014_august_interview with Julia Kiraly