EBA欧洲银行-28EBA-2015-E-3842920Annex-Decision-H-SZN-I-27-2015_1页_79kb

Summary of Decision No. H-SZN-I-27/2015. of the Central Bank of Hungary on the Sale of Business Tool Application for MKB Bank Zrt.

Core Content

The Central Bank of Hungary (MNB) issued Decision No. H-SZN-I-27/2015. to apply the sale of business tool in the resolution process of MKB Bank Zrt., which was placed under resolution on 18 December 2014. The decision outlines the legal and procedural framework for the sale of specific loan claims as part of the bank's resolution strategy.

Key Information

• Bank Details:

  • Name: MKB Bank Zrt.
  • Seat: 1056 Budapest, Váci street 38.
  • Company Register: Budapest-Capital Regional Court of Appeal
  • Company Register No.: 01-10-040952

• Resolution Context:

  • MKB Bank Zrt. was placed under resolution due to financial distress.
  • MNB, as the designated national resolution authority, opted for the sale of business tool as the preferred resolution method.
  • The goal was to divest certain portfolio elements to ensure the bank's viability and stability.

• Sale of Loan Claims:

  • One loan claim was sold to Plaza Centers Enterprises B.V., a company registered in the Netherlands.
  • The credit agreement involved a European Union debtor, making the transaction compliant with EU regulations.

• Selection of Recipient:

  • The recipient was selected based on the resolution objectives, maximization of transfer price, transparency, and compliance with procedural requirements.
  • A transparent selection method was used to identify the best bidder.

• Impact on Customers:

  • The decision does not affect retail customers of MKB Bank Zrt.
  • It is a necessary procedural step in the broader resolution plan.

Main Points and Views

• The sale of business tool is a key instrument in the resolution process of failing banks, aimed at restructuring the bank's assets and minimizing systemic risk.
• MNB ensured legal compliance by adhering to the provisions of Article 42 paragraph 2 of the Hungarian Resolution Act, which implements Article 39 paragraph 1 of the BRRD.
• The transparency and fairness of the selection process were emphasized, with the best bidder chosen to maximize the transfer price and support the resolution objectives.
• The decision is effective from 9 October 2015, and it is part of the planned actions to enhance the effectiveness of the resolution process.

Conclusion

The resolution decision reflects MNB's commitment to efficient and transparent resolution mechanisms in line with EU banking regulations. By selling a loan claim to a qualified buyer, the bank aims to divest non-viable assets, support its restructuring, and ensure continued operations without affecting its retail customer base. The process adheres strictly to legal frameworks and prioritizes maximizing value and minimizing disruption.