Hungary’s central bank has revoked Trive Bank’s operating licence and ordered its liquidation after finding that the lender no longer has sufficient capital to continue operating. Depositors are set to receive compensation within seven working days, up to the statutory limit.

The Hungarian National Bank (MNB) announced the decision on Wednesday, adding that the move would not threaten the stability of the country’s financial system.

The bank had fewer than 100 depositors, while its outstanding household loans amounted to less than HUF 2 billion (EUR 5.3 million). According to the MNB, its lending portfolio represented well below 0.01% of Hungary’s total banking market.

The National Deposit Insurance Fund (OBA) will pay eligible depositors within seven working days, up to the statutory compensation limit of EUR 100,000 per depositor per credit institution.

At the current exchange rate, this is worth more than HUF 36 million. The actual amount paid will depend on each depositor’s eligible balance and the applicable rules.

Customers do not need to submit a separate application to the OBA. The compensation process will be based on information provided to the fund by Trive Bank.

The MNB has appointed Financial Stability and Liquidation Non-Profit Ltd. (PSFN) to oversee the liquidation, in accordance with the relevant legislation. The process officially begins on the date the central bank’s decision is communicated.

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The MNB said its ongoing supervisory activities had revealed that Trive Bank’s capital position no longer allowed it to continue operating in the market. The lender primarily offered small-value online personal loans, advertising a process that could reportedly take as little as 15 minutes.

The central bank had previously ordered the bank to ensure continuous compliance with legal requirements concerning its own capital, and had also imposed a fine. However, the bank failed to meet those requirements, according to the MNB.

The regulator said the decision was intended to ensure an orderly and regulated withdrawal from the market while protecting customers and maintaining confidence in Hungary’s banking sector.

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Trive Bank, which has Turkish roots, entered the Hungarian market offering digital lending services. Its online model focused on providing personal loans through a streamlined application process. Despite the bank’s closure, the MNB stressed that its limited size meant the decision would have no meaningful impact on Hungary’s financial markets.

The priority is the orderly settlement of the bank’s affairs and the repayment of eligible deposits under the deposit guarantee scheme.