Template-Type: ReDIF-Article 1.0
Author-Name:Krisztina Földényi Láhm
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: lahmk@mnb.hu

Author-Name: András Kómár
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: komara@mnb.hu

Author-Name: Antal Stréda
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: stredaa@mnb.hu

Author-Name: Róbert Szegedi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: szegedir@mnb.hu


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

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.

Classification-JEL: H12, G01, G29
Keywords: MKB Bank, MNB, financial stability system, resolution, resolution
authority, Resolution Act, Resolution Fund

Journal: Financial and Economic Review  
Pages: 5–26
Volume: 15
Issue: 3
Year: 2016
File-URL: http://english.hitelintezetiszemle.hu/letoltes/krisztina-foldenyi-lahm-andras-komar-antal-streda-robert-szegedi.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:15:y:2016:i:3:p:5-26