Bausparkassen provided stability during the banking crisis. The financing business segment is FLK’s greatest strength.
During the economic crisis, many Hungarians, facing a deteriorating exchange rate, were no longer able to repay their loans, and default rates rose at many financial institutions. Loans in foreign currencies used to be very popular for financing housing. By contrast, the institutions offering contractual savings for housing plans – which had been operating in Hungary since 1997 – weathered the crisis well. They even had good enough credit quality to expand their financing business, since they provided funds for housing exclusively in the domestic currency. Moreover, Bausparkassen are in a better position than banks to judge their customers’ ability to make regular payments. The largest Bausparkasse in Hungary is Fundamenta-Lakáskassza (FLK), a company in which Bausparkasse Schwäbisch Hall is invested. Bausparen is not the only segment in which FLK has an outstanding market position.