EBA欧洲银行-Decision-of-the-Magyar-Nemzeti-Bank-28the-central-bank-of-Hungary29_1页_279kb

MKB Bank Zrt. Resolution Process Summary

Core Content

The Central Bank of Hungary (MNB) issued Decision No. H-SZN-I-6/2015. regarding the application of the sale of business tool in the resolution process of MKB Bank Zrt. This decision outlines the steps taken to divest certain assets from the bank in order to fulfill resolution objectives and ensure the stability of the financial system.

Background

MKB Bank Zrt. was placed under resolution on 18 December 2014. As the designated national resolution authority, the MNB opted for the sale of business tool as the preferred resolution strategy. This approach allows for the orderly transfer of certain portfolio elements to a receiver, thereby facilitating the resolution process while minimizing disruption to the bank's operations.

Key Information

• Resolution Objectives: The sale of business tool is intended to support the resolution process and enhance the effectiveness of asset divestiture.
• Asset Sale Process:
  • A data room was established and managed by an internationally recognized advisory firm.
  • Negotiations were conducted with potential investors and syndicated loan partners.
• Asset Details:
  • A total of 7 loan claims were sold to OTP Bank Nyrt.
  • These claims include:
    • 2 domestic transactions
    • 3 European Union transactions
    • 1 transaction with a third country
    • 1 transaction involving debtors from both the EU and third countries
• Choice of Recipient:
  • OTP Bank Nyrt. was selected as the buyer due to its strategic position and prior involvement in the transactions.
  • The decision was made to maximize the transfer price and ensure the swift execution of the resolution plan.
  • The sale was necessary to maintain the value of the assets and prevent a significant loss in value for other potential buyers who could only acquire minority shares.

Main Views

• Strategic Selection: The selection of OTP Bank Nyrt. was based on its existing relationship with the transactions and its ability to provide a higher value for the asset package.
• Compliance with Legal Framework: The sale process adhered to the requirements of Article 42 paragraph 2 of the Hungarian Resolution Act, which transposes the criteria from Article 39 paragraph 1 of the Bank Recovery and Resolution Directive (BRRD).
• Necessity of Swift Action: Delaying the sale would have compromised the resolution objectives and reduced the effectiveness of the sale of business tool.
• Impact on Customers: The decision does not affect the retail customers of MKB Bank Zrt., ensuring continuity of services for the general public.

Conclusion

The sale of business tool was implemented to support the resolution of MKB Bank Zrt. by transferring selected assets to OTP Bank Nyrt. in a manner that maximizes value and aligns with the legal and strategic requirements of the resolution process. The MNB continues to pursue the sale of further assets as part of the ongoing resolution strategy.