Bank resolution as a new MNB function – resolution of MKB Bank

Krisztina Földényi Láhm (), András Kómár (), Antal Stréda () and Róbert Szegedi ()
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Krisztina Földényi Láhm: Magyar Nemzeti Bank
András Kómár: Magyar Nemzeti Bank
Antal Stréda: Magyar Nemzeti Bank
Róbert Szegedi: Magyar Nemzeti Bank

Financial and Economic Review, 2016, vol. 15, issue 3, 5–26

Abstract: In this study, the authors provide a comprehensive overview of the process of the successful resolution and reorganisation of MKB Bank Zrt., and the practical implementation of the resolution regulations, which was one of the first applications of these regulations in the European Union. The authors present the resolution tools and powers used by the central bank of Hungary (Magyar Nemzeti Bank), as the resolution authority, emphasising the indispensable cooperation between Hungarian and European Union authorities and institutions. As a conclusion, they find that the only fast and efficient way to protect the stability of the Hungarian financial system without the use of public funds was to apply the new resolution toolset. In connection with the resolution procedure, the creditors of MKB Bank Zrt. suffered no losses, as the funds of the bank’s customers and business partners were safely protected at all times.

Keywords: MKB Bank; MNB; financial stability system; resolution; resolution authority; Resolution Act; Resolution Fund (search for similar items in EconPapers)
JEL-codes: G01 G29 H12 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:15:y:2016:i:3:p:5-26

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