Support from the savings cooperatives sector. Strong funding and liquidity profile as the central clearer for the savings cooperatives sector. High systemic importance of Takarekbank and the savings cooperatives sector in Hungary. Strong levels of sustainable net interest margin revenue generation, which help to cushion elevated loan loss provisioning. Deteriorating asset quality and earnings of Takarekbank and the savings cooperatives sector. Takarekbank's low capitalization amid deteriorating economic and industry conditions in Hungary. Increased credit risk from recently contracted loan portfolio, domestic foreign currency lending, and loan concentrations. The ratings on Hungary-based Magyar Takarékszövetkezeti Bank Rt. (Takarékbank; Bank of Hungarian Savings Cooperatives Co. Ltd.) are constrained by the heightened macroeconomic and industry risks in the Republic of Hungary, which are having
