Three banks seal merger to form Hungary’s No.2 banking group

State-owned Budapest Bank and MKB Bank and savings group Takarekbank (MTB) have signed a deal to form Hungary’s second-largest banking group, the minister responsible for the agreement told state news agency MTI late on Friday. The deal was widely expected after the three banks announced a strategic alliance in May. It marks a new chapter in the shake-up of a banking system that has seen local players gain influence under nationalist Prime Minister Viktor Orban. The state will have a 30.35% stake in the new group, to be called Magyar Bankholding, according to a statement by minister Andrea Mager posted on MTI.

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