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Takarékbank charter approved by savings co-ops

Deals

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.

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