The Hungarian Development Bank Private Limited Company (MFB)
MFB Hungarian Development Bank’s core activities include the provision of preferential loans for domestic businesses and private individuals, the fulfilment of development requirements and fund management tasks in relation to the country’s European Union membership. Through its active participation in the performance of such tasks, MFB contributes to a balanced economic growth. The Bank has been operating as a financial institution with a focus on investments since 1993, i.e. for 25 years.
As a development bank, MFB’s priority is to provide funding opportunities in areas where commercial banks cannot provide loans efficiently, that is, the Bank wishes to address the shortcomings of the market. MFB lays particular emphasis on supporting access to EU funds, therefore, it has created the Network of MFB Points, which had, by the end of 2017, been expanded to 642 Points where business representatives and retail clients can request information.
MFB wishes to serve as a development banking group reactive to market needs with a wider range of products, which, in addition to its banking activity, is also active in the area of venture capital and loan guarantee.
Its legal status, tasks and activities are defined by Act XX of 2001 (MFB Act), its Articles of Association and the strategy approved by the Government.
Activities of the Brussels Representative Office
The fundamental task of the Brussels Representative Office of Hungarian Development Bank Plc. is to support the implementation of the Bank’s strategy and to execute strategic elements with EU relevance. Since its founding in 1997, the Representative Office has been continuously expanding the Bank’s international partnership relations with the development banks of EU Member States, with organisations and associations representing the interests of these banks, and with the EU’s financial institutions, the European Investment Bank (EIB) and the European Investment Fund (EIF).
The Brussels Representative Office directly assists the Bank in involving external funding, helps it join EU financing programmes, and provides information about the European Union’s development policy concepts and plans, as well as the business activities and best practices of the EU’s development banks.
The main tasks of the Representative Office are the following:
- to ensure that MFB Zrt. and the MFB Group are known and recognised in an international context;
- to continuously expand the Bank’s international partnership relations with the development banks of EU Member States, organisations and associations representing the interests of these banks, and the EU’s financial institutions, the European Investment Bank (EIB) and the European Investment Fund (EIF);
- to assist the Bank in involving external funding by joining EU financing programmes;
- to make proposals as to the establishment of new relations and the utilisation of business opportunities;
- to provide information about MFB Zrt’s business activities and products, and to engage in cooperation with several Hungarian interest representation groups operating in Brussels accordingly.
The Representative Office provides information on the following subjects:
- development of the policy concerning the European Union’s development funds, in particular the Structural and Cohesion Funds;
- events related to the EU’s financial policy and institutions;
- changes in relevant EU legislation and the EU’s efforts at legal harmonisation in the financial sector;
- available cooperation opportunities for the MFB Banking Group;
- business activities and best practices of EU development and investment banks.
During the Hungarian EU Presidency in 2011 the Representative Office was charged with the priority task of actively contributing to the successful conclusion of the Presidency, and hosted several business meetings and was present as a sponsor at individual events.