Key position as clearing bank and business coordinator of the savings cooperative sector Strong liquidity Improving efficiency Modest market position Still moderate profitability High loan and sector concentrations Low capital base Underdeveloped savings cooperative sectorial cohesion The ratings on Hungary-based Magyar TakarTksz÷vetkezeti Bank Rt. (TakarTkbank; Bank of Hungarian Savings Co-operatives Ltd.) are based on its key position as clearing bank and business coordinator within the Hungarian savings cooperative bank (SC) network; resulting strong liquidity; and improving efficiency, albeit from a low level. The ratings remain constrained by TakarTkbank's modest position in an increasingly competitive market; the bank's still moderate profitability; concentration risk in the loan portfolio; a low capital base; and the underdeveloped cohesion within the SC sector. The ratings
