View source for MKB Bank

{{short description|State-controlled bank in Hungary}}
{{Expand language|topic=|langcode=hu|otherarticle=MKB Bank|date=January 2022}}
{{Infobox company
| name   = MKB Bank
| logo   = MKB Bank logo.svg 
| type   = [[Public company|Public]]
| image  = Tiszti Kaszinó (1).JPG
| image_caption  = Head office at Váci utca 38, Budapest
| foundation     = 1950 
| defunct        = 2023
| successor      = [[MBH Bank]]
| location       = [[Budapest]], [[Hungary]] 
| key_people     = 
| industry       = [[Finance and Insurance]]
| products       = [[Commercial bank]]ing, 
| homepage       = {{official URL}}
}}

'''MKB Bank''', initially '''Magyar Külkereskedelmi Bank''' ({{lit|Hungarian Foreign Trade Bank}}), was a Hungarian [[public bank|state-owned bank]] founded in 1950. It was privatized in the mid-1990s, then renationalized in the 2010s. It eventually merged in the early 2020s with [[Budapest Bank]] and [[Takarékbank]] to form Magyar Bank Holding, branded [[MBH Bank]], thus creating the second-largest [[commercial bank]] in [[Hungary]] behind [[OTP Bank]]. The complex three-way merger was announced in 2020 and completed in 2023.<ref name=merger>{{cite web |website=Hungary today |url=https://hungarytoday.hu/mbh-second-largest-player-in-hungarian-banking-starts-operations/ |date={{date|2023/05/12}} |title=MBH: Second Largest Player in Hungarian Banking Starts Operations}}</ref>

== History ==

MKB was created in 1950 within the communist-era [[single-tier banking system]], in which it was one of the country's four main financial institutions alongside the [[Hungarian National Bank]], the Hungarian Investment Bank (renamed the State Bank for Development in 1972 and liquidated in 1987),{{R|Lengyel|p=386}} and the [[OTP Bank|Hungarian National Savings Bank Company]].<ref name=Lengyel>{{citation |title=The Hungarian Banking System in Transition |author=Imre Lengyel |journal=GeoJournal |volume=32 |date=April 1994 |issue=4 |pages=381–391 |doi=10.1007/BF00807358 |jstor=41146180 |bibcode=1994GeoJo..32..381L |url=https://www.jstor.org/stable/41146180 |url-access=subscription }}</ref>{{rp|382}} It took over assets and operations, among others, from the former [[Hungarian Commercial Bank of Pest]]. The purpose of its establishment was to participate in the international monetary system and manage financial transactions related to foreign trade.

In 1987 Hungary reformed its banking system. MKB received full operational license to service the general population.<ref>{{Cite web |title=Az MKB Bank története |url=http://127.0.0.1:4242/az-mkb-bankrol/bemutatkozunk/tortenet |access-date=2022-05-31 |website=127.0.0.1 |language=hu}}</ref> It was the first of the top five state-owned banks to be privatized, in 1994-1995 when [[BayernLB]] acquired a 25 percent stake, subsequently raised in stages until the mid-2000s.

In 2012, having received state aid in Germany, [[BayernLB]] agreed with the [[European Commission]] that it would divest its ownership of MKB.<ref name=Vass>{{citation |title=Member banks of the Hungarian Banking Association |author=Péter Vass |url=https://www.bankszovetseg.hu/Public/gep/2019/ENG/081-125%20peter%20vass_doi.pdf |date=March 2019 |volume=6 |journal=Economy and Finance (GÉP) |issue=1 |publisher=Hungarian Banking Association |location=Budapest |page=95}}</ref> The deadline for divestiture was set at end-2016.<ref name=BKU>{{citation |url=https://www.nomos-elibrary.de/10.5771/9783748946526-117.pdf |author=László Szegedi & Bálint Teleki |title=10 Years of the European Banking Union, 20 Years of Hungarian EU Membership |year=2024|pages=117–138 |doi=10.5771/9783748946526-117 |isbn=978-3-7489-4652-6 }}</ref>{{rp|133}} The Hungarian government determined that the bank was in financial distress and took control of it in 2014.<ref>{{cite web |title=Hungary nationalises German-owned MKB bank |url=http://blogs.ft.com/beyond-brics/2014/07/24/hungary-nationalises-german-owned-mkb-bank/ |date= 24 July 2014 |website=ft.com |access-date= 24 January 2017}}</ref>

In 2015 the [[National Bank of Hungary]] (NBH) bought MKB for €55 million. At the time it was the country's sixth-largest lender by assets.<ref name=rtr3/>

In 2016, NBH sold MKB to a consortium of domestic and foreign equity funds. METIS Private Capital Fund would buy 45%, Blue Robin Investments SCA, a group of Indian and Chinese private investors, would buy 45%, and Budapest-based Pannonia Pension Fund would buy 10% of the allotted capital.<ref name="rtr3">{{cite news |url=https://www.reuters.com/article/idUSKCN0WW2BH/ |author=Krisztina Than & Gergely Szakacs |title=Exclusive - Hungary to sell MKB Bank, domestic buyers to own majority - CEO |date={{date|2016/03/30}} |website=Reuters}}</ref><ref name="ipe1">{{cite news |url=https://www.ipe.com/cee-roundup-hungarian-national-bank-pannonia-pension-fund/10014991.article |title=CEE Roundup: Hungarian National Bank, Pannónia Pension Fund }}</ref><ref name="if1">{{cite news |url=https://www.iflr1000.com/Deal/Profile/7731?SEOtitle=Metis-Blue-Robin-Investments-Pannonia-Ft37-billion-acquisition-of-MKB-Bank#undefined | title=Metis/Blue Robin Investments/Pannonia Ft37 billion acquisition of MKB }}</ref>

In January 2019, 81.5% of MKB shares were purchased by [[Lőrinc Mészáros]] and [[László Szíjj]].<ref name="nep1">{{cite news |title=Itt a bizonyíték, Mészáros Lőrinc bankjától kapott 10,6 millió eurós hitelt a francia szélsőjobboldali Marine le Pen |url=https://nepszava.hu/3149352_mkb-bank-hitel-marine-le-pen |work=Népszava}}</ref>
 
In May 2020, it was announced that Budapest Bank and Takarékbank would merge with MKB under the common entity Magyar Bankholding (MBH).<ref>{{cite web |website=Reuters |date={{date|2020/05/26}} |title=Hungary's Budapest Bank joins MKB-Takarek merger as domestic banks grow |author=Marton Dunai |url=https://www.reuters.com/article/hungary-banks-merger-idINL8N2D84WE }}</ref>

In February 2022 MKB agreed to represent the portfolio of [[CIG Pannonia]] to their clients.<ref name="dnh1">{{cite news |url=https://dailynewshungary.com/cig-pannonia-group-and-the-hungarian-bankholding-group-sign-20-year-strategic-cooperation-agreement/ |title=CIG Pannónia Group and the Hungarian Bankholding Group sign 20-year strategic cooperation agreement - Daily News Hungary |date=22 February 2022 }}</ref>

In 2022, MKB absorbed Budapest Bank on March 31,<ref name=merger/><ref name="dnh2">{{cite news |url=https://dailynewshungary.com/superbank-is-coming-the-central-bank-of-hungary-approved-the-merger-of-budapest-bank-and-mkb-bank/ |title=Superbank is coming: The central bank of Hungary approved the merger of Budapest Bank and MKB Bank - Daily News Hungary |date=6 February 2022 }}</ref> and in August 2022 took over the Hungarian loan portfolio of [[Sberbank]].<ref name=sber>{{cite web |website=Budapest Business Journal |date={{date|2022/08/02}} |title=MKB Bank Completes Takeover of Sberbank Hungary Loan Portfolio |url=https://bbj.hu/economy/finance/banking/mkb-bank-completes-takeover-of-sberbank-hungary-loan-portfolio }}</ref> The merger with Takarékbank was finalized on {{date|2023/04/30}}.<ref name=merger/>

== Political ties ==

MKB Bank has financed by loan the campaign of French presidential candidate [[Marine Le Pen]]. The asset declarations of France's presidential candidates reveal that she received some EUR 10.7 million in total.<ref name=rtr6>{{Cite news |date=2022-03-10 |title=France's Le Pen got loan from Hungarian bank close to Orban -filing |language=en |work=Reuters |url=https://www.reuters.com/world/europe/frances-le-pen-got-loan-hungarian-bank-close-orban-filing-2022-03-10/ |access-date=2022-05-31}}</ref><ref name=nep1/>

==See also==
{{Portal|Banks}}
* [[OTP Bank]]
* [[K&H Bank]]
* [[CIB Bank]]
* [[List of banks in Hungary]]
* [[MKB Unionbank]]

==References==
{{Reflist}}

{{Banks of Hungary}}
{{Authority control}}

[[Category:Banks of Hungary]]
[[Category:Companies listed on the Budapest Stock Exchange]]
[[Category:Companies based in Budapest]]
[[Category:Companies in the BUX]]
[[Category:Banks established in 1950]]
[[Category:Hungarian brands]]
[[Category:1950 establishments in Hungary]]


{{Europe-bank-stub}}
{{Europe-company-stub}}
{{Hungary-stub}}