Hungarian Development Bank
The Magyar Fejlesztési Bank Zártkörűen Működő Részvénytársaság (MFB Zrt.), Ie MFB Hungarian Development Bank, or Magyar Fejlesztési Bank (Hungarian Development Bank) for short is a credit institution wholly owned by the Hungarian state . Law No. 20 of 2001 (MFB Law), as well as the charter and the strategy approved by Parliament and the Hungarian government, govern their status, tasks and scope of action. Its main task is to secure favorable development loans for Hungarian companies and to support the Hungarian state in the realization of its long-term economic development goals with the help of capital market resources. The MFB Zrt. has had an independent international rating from the international rating agency Moody's Investors Service since May 19, 2003 .
history
The Magyar Befektetési és Fejlesztési Rt., The later MBFB and subsequently the legal predecessor of the MFB were owned by three state institutions, the Állami Vagyonkezelő Rt. (Staatliche Treuhand AG), the Állami Vagyonügynökségti (Staatliche Treuhandanstalt. Fejleset Entwicklungsanstalt AG) on November 27, 1991 - initially not as a bank. On July 1, 1993, the institution was transformed into an investment bank called Magyar Befektetési és Fejlesztési Bank Rt. From 1995 the MBFB participated in the placement of loans from Japan, Germany and the European Union and later acquired stakes in the regional development companies and in the Rákóczi Bank. In the same year, MBFB took over the headquarters for credit institutions from the Ministry of Finance and became a shareholder in the investment bank.
The credit institute, operating under the name Magyar Fejlesztési Bank (Hungarian Development Bank) since 1997, took an active part in the stabilization and further development of the Hungarian banking system in the second half of the 1990s. Between 1996 and 1998 the institution developed into a complex state banking group with brokerage firms , specialist banks and the regional development companies mentioned above.
An important milestone in the history of the bank in 2000 was the separation of the strategies with economic policy priority from those activities that were carried out at its own business risk. In the same year, six loan programs for the small and medium-sized business sector were launched. A loan was also offered to support family businesses.
Another turning point in the history of the bank was Act No. 20 of 2001 on the Hungarian Development Bank, which has since been the legal framework for the bank's operations. Another change was the strategy drawn up in 2002 and approved by the government in 2003, which positioned the bank as a classic development bank. The strategy determined the main directions of the Bank's activities up to 2008, which were further developed in 2007 taking into account the changing international and national conditions, with the objectives and instruments foreseen up to 2013 being defined. With the sale of the Konzum Bank in 2003/2004, its activities as a commercial bank ended.
The strategy drawn up in 2002 prescribed the structure and scope of activities required for a classic development bank, as well as the adaptation of the bank to the guidelines of Hungarian economic policy. She also worked to prepare for Hungary's accession to the European Union and to ensure that the institution would meet international requirements. On the basis of this strategy, a uniform banking group with a "profile-adjusted" system was set up around MFB in 2006. In order to precisely define the structure and functions of the banking group, MFB and its owner, the Hungarian state, agreed on the further development and extension of the strategy for the period from 2007 to 2013.
The economic crisis that began in 2008 caused the plans to fail. Borrowing for investments practically came to a standstill on the Hungarian capital market. The opportunities for commercial banks to obtain financial resources almost dried up. First, there was a decrease in loans granted to businesses and the general public. The sovereign debt problem later became critical, which was followed by a rapid deterioration in the forint exchange rate . In this situation, the MFB's role as lender for both businesses and communities has been upgraded. In addition to long-term loans, the demand for short-term loans for working capital also increased. In the end, the MFB in 2009 was one of the most important institutions for crisis management.
The deepening of the crisis in 2010 led to a significant change in the role of MFB. Simultaneously with the profound restructuring of the Hungarian state, the government entrusted the MFB with two tasks: the management of common property valued at around 8,000 billion forints and the review of its own portfolio while continuing to operate as a development bank. After the audit entrusted to it in the areas of finance, law and IT, the MFB adjusted the companies to responsible management and adjusted their own portfolio. As a result of this activity, MFB was able to close the first two quarters of 2013 with a positive balance sheet result.
The structure of the MFB, the MFB law
Law No. 20 of 2001, which has been modified several times, states that the MFB is a special credit institution that functions as a closed one-man joint-stock company and whose shares are wholly owned by the Hungarian state, represented by the minister responsible for supervision of the state property is responsible. The representative of the partner has been the Minister for Development since June 2010. In addition to the minister, who exercises shareholder rights, the bodies responsible for management, decision-making and control are the board of directors and the supervisory board. The board of directors of the bank exercises the shareholder rights for a period of five years and is entitled to appoint and recall the board of directors. At the head of the board is the chairman, who is chosen by the board from among its own ranks. The controlling body of the bank is the supervisory board, whose chairman and members are elected and dismissed by whoever exercises the shareholder rights. At the head of the organization is the general director, who establishes an employment relationship with the special credit institution. The auditor of MFB Zrt. is elected for a limited period by the person who exercises the shareholder rights. The MFB law also defines the tasks of the bank and financial services. The law also determines incompatibility and confidentiality. An example of the former is that the members and employees of the management board and the supervisory board of MFB Zrt. are not allowed to hold offices in the party and are not allowed to assume any functions in public life in the name of the party or in its interest - with the exception of participation as a candidate in parliamentary or local elections.
The strategic corporate group of MFB
In the MFB Act, the companies belonging to the strategic corporate group of MFB are listed individually. Two legal criteria form the basis for which strategic MFB group a company belongs to. One group includes those economic bodies in which the MFB exercises shareholder rights on behalf of the Hungarian state; on the other hand, those in which MFB has shares.
Analyzes
MFB Periszkóp is the monthly report of the Hungarian Development Bank, which, besides interpreting current trends in the real economy and the financial market, generally deals with current events in its wider environment from the perspective of companies and banks.
MFB Indicator is the large survey created by the bank every six months , which collects information from several hundred commercial enterprises using questionnaires, with the questions being answered voluntarily. The analysis is based on four indicators: the indicators for macroeconomics, for the market, for financing and investments. The indicators, which have been recorded continuously since summer 2009, stimulate thought and provide a detailed picture of the state and processes in the Hungarian economy.
MFB Makrogazdasági analyzes provide an overview of processes in the world economy, with the aim of assessing the scope for action and the possibilities of the Hungarian economy in relation to international trends.
Balance sheet data, results (million HUF)
| designation | Year 2010 | Year 2011 | Year 2012 | year 2013 |
|---|---|---|---|---|
| Balance sheet total | 1 189 212 | 1 372 203 | 1 102 909 | 1 104 714 |
| Subscribed capital | 100,000 | 114 500 | 114 500 | 114 500 |
| Equity | 121 358 | 212 736 | 195 370 | 198 370 |
| Sum of the loans paid | 212 247 | 158 023 | 182 529 | 117 407 |
| Share of qualified loans in% | 15.14% | 17.76% | 16.85% | 19.25% |
| Impact on the result from losses in value / provisions | -32,789 | -43 061 | -25 138 | -7 114 |
| Business result | 7 601 | 4 773 | 21 757 | 12 182 |
| Profit before tax | -25 523 | -38 621 | -17 135 | 5 379 |
| Share of MFB in% of the total loan portfolio of companies | 11.51% | 11.49% | 11.55% | 9.70% |
Awards
- In 2008, MFB was rated by Euromoney as one of the best managed financial institutions in Central and Eastern Europe.
- Erzsébet Gém, Chief Economist of the MFB received the Knight's Cross of the Hungarian Order of Merit (civil level) in 2013
Chairperson
- Gyula Takácsy, 1991-1994
- Peter Medgyessy, 1994-1996
- Éva Hegedűs, 1996–1997
- Tamás Tétényi, 1997–1998
- Péter Patonai, 1998-2000
- Éva Búza, 2000-2001
- László Baranyay, 2001–2002
- György Zdeborsky, 2002–2010
- László Baranyay, 2010–2013
- Dániel Lontai, 2013-
General Directors
- Miklós Bányai, 1991–1994
- Peter Medgyessy, 1994-1996
- András Huszty, 1996–1998
- Péter Patonai, 1998-2000
- Éva Búza, 2000-2001
- László Baranyay, 2001–2002
- János Erős, 2002–2010
- László Baranyay, 2010–2013
- Csaba Nagy, 2013–