Takarékbank charter approved by savings co-ops
Based on the National Association of Savings Cooperatives’ (OTSz) advisory to member institutions to approve integration of the subsector under the now government-owned Takarékbank despite apparent “legal coercion,” savings co-ops indeed approved a new charter in a vote yesterday.
A capital raise of HUF 655 million by Magyar Posta into Takarékbank gives the central government and Hungarian Development Bank (MFB) a majority stake. The new charter promises to “help savings cooperatives to become capital-strong, competitive and stable market players and offer all of their clients modern and unified banking services.”
The measures under the new charter were introduced earlier this year as part of a government effort to comply with certain European Union-prescribed capital adequacy requirements. In order to do so, saving co-operatives parted with their combined 55% stake in Takarékbank.
Despite the agreement, OTSz will reportedly be going forward with a lawsuit against the state and Magyar Posta, suing for compensation after the majority share was acquired by the latter at 20% of market value.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.