BayernLB has sold its Hungarian unit MKB Bank to the state for €55m in a move the government says will push foreign bank ownership below percent. Prime minister Viktor Orban has long sought to reduce Hungary’s dependence on foreign investors while increasing the state’s role in the economy. The Wall Street Journal’s blog reported that Hungary’s national bank governor predicts that four foreign banks will eventually pull out of the country.
Citing a video posted on the government’s website, the WSJ quoted Hungary’s economics minister Mihaly Varga as saying “This purchase of MKB is a very important step toward the consolidation of the banking sector. The Hungarian government wants to accelerate this consolidation.” He went on to blame the collapse in 2008 of the country’s currency, the forint, on foreigners who “withdrew significant amounts of funds from the Hungarian banking sector when the crisis hit.”
“Our goal is to establish an operational, strong banking system, which is active in lending and in which the share of Hungarian ownership could gradually increase,” said Varga.
