The MNB (acting as the central bank of Hungary) approved the next significant step of the merger schedule of Hungarian Bankholding, the fusion of Budapest Bank and MKB Bank, which will take place on 31 March 2022. Takarék Group will join the bank merged under the name of MKB Bank Plc. until May 2023.
The MNB approved the implementation of the next step of the merger schedule of Hungarian Bankholding. Thus, according to the plans, Budapest Bank and MKB Bank will merge on 31 March 2022. During the fusion process, Budapest Bank will be merged into MKB Bank, and the merged bank will temporarily operate under the name of MKB Bank Plc. The merger of the two member banks is another important milestone in the establishment of the superbank with a key role in the Hungarian financial market.
Takarék Group will join the merger until May 2023.
As a technical step, the central bank also approved the participation of Hungarian Takarék Bankholding Ltd. – which owns Takarék Group – in the merger on 31 March 2022, in the framework of which Hungarian Takarék Bankholding Ltd. will also merge into MKB Bank Plc. Until the fusion of Takarék Group, Hungarian Bankholding Group will harmonize its internal operations.
The merger does not represent a change in the ownership structure of the banking group, Hungarian Bankholding Ltd. continue to be the defining owner of the banks participating in the fusion process.
“The unique merger process in the region is progressing succesfully and as planned. We are establishing a universal bank which looks to the future and aims to provide the best possible service to Hungarian people and businesses”
– said dr. Barna Zsolt, CEO and Chairman of the Board of Hungarian Bankholding.
Following 31 March, the continuous and uninterrupted service for retail and corporate clients will be ensured: in addition to their usual bank branches and administration channels, clients of Budapest Bank and MKB Bank will be able to manage their finances in new locations and in a larger branch network.
As a result of the full operational merger in 2023, the second largest commercial bank of Hungary will be established in terms of the balance sheet total. The forming superbank will introduce flexible, internationally leading digital solutions and will build on the strengths, values and best practices of the three strong domestic commercial banks, including the many decades of expertise accumulated by member banks, or their commitment to high-quality customer service.
The merger process is accompanied by significant IT developments: Hungarian Bankholding is currently building a new digital banking platform that will be state of the art in terms of both technology and customer experience.
The transition between individual products and their combination will be much simpler, and the constructions will become even more customizable.
The emerging large bank aims serve the full market spectrum and all customer segments in the future, with a significant emphasis on the provision of new, affordable and modern range of products and services to retail, micro, small and medium-sized enterprise and agricultural clients.