Co-operative credit unions create stronger, more competitive and more efficient co-operative credit institutions; in the current 9 merger applications, 32 savings cooperatives were affected – the Integration Organization of Cooperative Credit Institutions (HISZ) informed MTI on Friday. They emphasized that the mergers are based on the autonomous, sovereign decision of the savings cooperatives.
According to the organization
the decision on the merger falls within the competence of the owners of the (cooperative) savings cooperatives, which is to be decided by the general meeting of the cooperative credit institutions.
It was recalled that in the early 1990s, there were more than 220 cooperative credit institutions in Hungary, and today, mainly due to mergers, their number has decreased to 78, with approximately 1.1 million clients.
With the entry into force of the Integration Act, since July 2013, 16 merger processes have been successfully completed involving 51 cooperative credit institutions. In the merger process, Good Finance Zrt., As the central bank of the cooperative credit institutions and the National Bank of Hungary, has the licensing power – informs SZHISZ.
It has been recalled that in the last few years there has been a significant number of mergers in the cooperative credit institution sector, with increasingly stringent regulatory and supervisory requirements for credit institutions, such as EU and domestic capital requirements, other prudential requirements, and increased disclosure requirements. business market challenges.
Increased capital enables more active lending
the provision of larger amounts of loans, thus serving larger clients. In addition, by eliminating duplication, mergers can save costs in a number of areas, and the increased size of the plant enables the use of additional highly qualified professionals.
The merger savings, following the merger, want to be more active than at present in meeting the financial needs of the local population, businesses and local governments in the region, he wrote.
Customers will typically be able to use more and higher quality services
After the merger, customers will typically be able to use more and higher quality services, and after the merger, among other things, foreign currency account management and credit card services will become available, according to the information.
SZHISZ is the central governing, regulating and mandatory institutional protection body for the integration of cooperative credit institutions.
Its members are persons or organizations admitted to the cooperative credit institutions, the Hungarian Savings Bank Cooperative Bank Ltd., the Hungarian Development Bank (MFB) and the integration organization (MTI).