Acquiring a bank

Acquiring a bank is complicated transaction. It involves all the processes of acquisition including receiving financial regulatory approvals.

    Inhabitants - 9,976,062 (July 2011)

    Language - Hungarian 93.6%, other or unspecified 6.4%

    Currency - Hungarian forint (HUF), floating exchange rate ~ 0.003 EUR

    Religion - Roman Catholic 51.9%, Calvinist 15.9%, Lutheran 3%, Greek Catholic 2.6%, other Christian 1%, other or unspecified 11.1%, unaffiliated 14.5% .

    Politics - The politics of Hungary take place under the framework of a parliamentary, representative and democratic republic. The Prime Minister is the head of government of a multi-party system, while the President is the head of state and holds a largely ceremonial position. Executive power is exercised by the Council of Ministers. Legislative power is vested in both the government and the parliament. The party system since the last elections is dominated by the conservative Fidesz party. The two larger opposition parties are the Hungarian Socialist Party (MSZP) and Jobbik. The judiciary is independent of the executive and the legislature.

  • Major industries - mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles

    Banks (2010) - 45 banks; 1,670 branches; 39,875 employees; assets – EUR 120,93 billion; loans – EUR 74,80 billion; deposits – EUR 48,81 billion

    Banking regulations – In Hungary the supervision and regulation of the financial sector is integrated, which means that the supervision of banking, insurance, pension funds, as well as capital markets is performed by one and the same authority, the HFSA, with a harmonised methodology and approach, although the types of activities are governed by different legal instruments. This approach makes group level supervision as well as cross-sector risk assessment possible.

    The HFSA undertakes both prudential supervision of banks and other financial institutions and regulation of how they conduct their business. The authority of the HFSA stems from various legal sources, however, and the structure and methods of supervision are laid down in Act CLVIII of 2010 related to the Hungarian Financial Supervisory Authority (‘the HFSA Act’). Banks may be founded with a minimum subscribed capital of 2 billion forints (~ EUR 7 million).