* Nagy no longer in charge of financial stability issues
* Forint weakens slightly, due in part to announcement
* Change to serve "more efficient" supervision -central bank
(Adds central bank response)
BUDAPEST, March 6 National Bank of Hungary
Deputy Governor Marton Nagy will no longer be in charge of
financial stability issues at the bank, the central bank said on
Monday, removing a second major area of responsibility from Nagy
within a week.
Nagy will remain in charge of monetary policy issues and
improving bank lending, the bank said in the Official Gazette.
The role will be filled by a director reporting directly to
Governor Gyorgy Matolcsy in the new organisation structure.
Nagy has been the mastermind behind many of the bank's
unconventional monetary policies and important measures
affecting the bank system.
It was not immediately clear why the bank decided to reduce
his areas of responsibility. Last week, Nagy resigned his post
as chairman of the Budapest Stock Exchange (BSE).
"The changes in the organisational structure of the National
Bank of Hungary were needed to make the performance of the
financial stability function more efficient," the central bank
said in an emailed response to Reuters questions.
The management of the central bank supported the measure
unanimously, it said, adding that the changes were not unusual
as organisational roles have changed several times in the past.
Nagy, a 40-year-old economist, was appointed central bank
vice governor in September 2015 for a six-year term. Gyorgy
Matolcsy's term as governor will expire about a year after a
parliamentary election due in April 2018.
In recent months, Nagy has scrapped regular media briefings
and his media appearances have dried up. In his last major
interview, Nagy told the newspaper Magyar Hirlap the central
bank planned reforms to cut the cost of housing loans, which are
more expensive than loans in other countries.
Nagy has played a key role in major reforms affecting
Hungary's banks. Those included measures to curb Hungary's
reliance on foreign investors in debt financing, a stimulus
scheme to provide cheap loans to small businesses, and steps to
cut borrowing costs with unconventional monetary policies.
The scope of Nagy's responsibilities is still wide-ranging,
including the central bank's monetary toolkit, budgetary
analysis and competitiveness issues as well as his role in the
rate-setting Monetary Council.
"He had only substantial areas of responsibility, so
whatever is taken away, that is a significant step," a source
(Reporting by Krisztina Than and Gergely Szakacs; Editing by