Support from the savings cooperatives sector. Strong funding and liquidity profile, as the central clearer for the savings cooperatives sector. Better asset quality indicators than the Hungarian banking system's average. High systemic importance of Takarekbank and the savings cooperatives sector in Hungary. Vulnerable capital position. Weakened profitability, owing to the special banking tax in Hungary. High economic and industry risks in Hungary. Continued deterioration in asset quality of savings cooperatives. The ratings on Hungary-based Magyar Takarekszovetkezeti Bank ZRt. (Takarekbank; Bank of Hungarian Savings Cooperatives Co. Ltd.) reflect Standard&Poor's Ratings Services' view of the bank's vulnerable capital position, weakened profitability owing to Hungary's special banking tax, and continuous deterioration in the asset quality of savings cooperatives (SCs). The ratings
