Effective 24 February 2015, the Financial Stability Council of the Magyar Nemzeti Bank (MNB) has appointed oversight commissioners to the DRB Bank Group, comprised of BRB BUDA Regionális Bank, DRB Dél-Dunántúli Regionális Bank, Dél-Dunántúli Takarék Bank, and ÉRB Észak-magyarországi Regionális Bank. The temporary measure set forth in the MNB’s order in connection with the institutions’ operations was required by the urgent need to protect stakeholders.
The oversight commissioners have taken over control of the credit institutions from management as of today and will provide for the adequate operation thereof. Simultaneously, the central bank imposed a HUF 1 million restriction on the amount of deposits and other repayable funds that the credit institutions are allowed to pay per customer during the effective period of the temporary measures. Below that limit, in addition to retail customers, the claims of other customers will also be satisfied on request.
The MNB is currently conducting a comprehensive investigation of the credit institutions. The appointment of the oversight commissioners delegated by state-owned Pénzügyi Stabilitási és Felszámoló Nkft., and other restrictive measures will remain in effect until the decisions terminating the investigation are adopted, but for a maximum of one year, whereas restrictions on the repayment of deposits and other funds will remain in effect for a maximum of 90 days.
There is no risk to the Hungarian financial system from either the DRB Bank Group’s size or its activities.