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MFB to become financial services center

Initiatives

The Hungarian government is planning to transform the Hungarian Development Bank (MFB) into a kind of financial services center in the future, state secretary Zsuzsa Németh announced today.

Speaking at the conference organized by Hungarian business daily Napi Gazdaság, Németh spoke about the possible change in the bank's portfolio and said complex financial solutions would be crafted for capital, credit and guarantee products.

Though MFB would maintain ties with commercial banks, greater stress would be placed on cooperation with savings cooperatives and the state-owned postal company, Magyar Posta, accoding to Németh. Investment activities of the bank ought to be made more efficient as well, she said.

The plan is to involve the MFB in the distribution of credit from European Union sources with the cooperation of the National Economy Ministry and the Prime Minister's Office, she explained.

Németh said the bank wanted to support the activities of companies such as the National Toll Payment Service Company and the National Mobile Payment Company. She added that a number of opportunities would arise to further develop the activities of these companies in the future.

She said Magyar Posta had to be re-positioned in areas such as financial services or express delivery, as revenue from its traditional activities, namely letter delivery, is falling. The company started diversifying in 2013, with the acquisition of collection company Díjbeszedő Holding, she added.

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