Support from the Saving Cooperative sector with Takarekbank acting as the clearing bank and business coordinator Strong funding and liquidity profile Adequate risk management and good asset-quality indicators Low capitalization susceptible to high credit risk concentrations Modest profitability combined with volatile market related revenues Highly competitive environment Weak cohesion of the Saving Cooperative sector The ratings on Hungary-based Magyar Takarékszövetkezeti Bank Rt. (Takarékbank; Bank of Hungarian Savings Cooperatives Ltd.) reflect the low capitalization, modest profitability, and the challenges facing both the bank and the weakly united Saving Cooperative (SC) sector of operating in a highly competitive environment. Positive rating factors include the bank's key position with the Hungarian SC network, strong liquidity, and adequate risk management combined with robust asset
