Tight integration into the group of Hungarian savings bank cooperatives, with a joint and several guarantee by all member banks. Stronger funding and liquidity profile than the Hungarian banking system average. Still challenging operating conditions in Hungary. Weak capacity to generate internal capital, due to low leverage and efficiency. Geographic concentration in Hungary. Standard&Poor's Ratings Services' outlook on Hungary-based Magyar Takarekszovetkezeti Bank ZRt. (Takarekbank) is stable, balancing the improving economic environment in Hungary, and Takarekbank's tighter integration into the group of Hungarian savings bank cooperatives with limited business prospects as the demand for credit remains subdued. However, as a niche bank with weaker earning capacity than the sector average, we also expect the group will benefit less from
