Commissioner sees big role in integration for savings coop execs

Initiatives

Andrea Bártfai-Mager, Hungaryʼs government commissioner for postal affairs and national financial services, wants to see executives of savings cooperatives play a decisive role in the management of institutions guiding the integration of the sector, Hungarian news agency MTI reported today.

The aim is to reduce the risk stemming from over-dependence on central institutions resulting from the integration, Bártfai-Mager said at an event on Monday. 

The structure of the integration needs to be simplified and savings cooperatives must be given incentives to merge in order to achieve economies of scale, she said. Savings cooperative integrator SZHISZ should play an active role in oversight of this consolidation, while Takarékbank, the “central bank” for savings cooperatives, must ensure these tie-ups make business sense, she added.

The government wants to reduce the stateʼs participation in the integration in the mid-term and gradually withdraw entirely, Bártfai-Mager said.

The savings cooperative sector was integrated under a government initiative, starting in the summer of 2013, with the aim of creating synergies and helping savings cooperatives meet stricter European Union capital adequacy requirements.

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