The Central Bank of Hungary acquired control of the Hungarian Foreign Trade Bank (MKB)
5.1.2015
Question for written answer E-000016-15
to the Commission
Rule 130
Tibor Szanyi (S&D)
The resolution authority of Hungary, the Central Bank (MNB), decided to acquire control of the MKB in accordance with the decision of the Financial Stability Board and reorganise the credit institution and its subsidiaries.
One day before the deadline of the conclusion of the contract, 30th July 2014, the Hungarian government assessed the state acquisition of the MKB as a concentration of ‘national strategic importance’ and the Hungarian State acquired the company — previously recapitalised with EUR 270 million by the Bayerische Landesbank — for EUR 55 million. The market share of the MKB was under 10% in 2013: 6% for retail loans, 5.8% for household savings, 5.1% for retail deposits, 3.3% for investment funds, 9.2% for non-financial corporate deposits and 12.8% for non-financial corporate loans. According to experts even the possible failure of the bank would not drag down the whole Hungarian banking sector. This was confirmed by the MNB stating that the MKB does not pose a risk to the system.
1. In the opinion of the European Commission, is it acceptable that a central bank of a Member State, in the present case the MNB, subsidises a competitive market player with its assets?
2. In the opinion of the European Commission, is the decision of the MNB supported by the Hungarian Government compatible with the Rules for the State Aid?