ANNUAL REPORT 2011 - Magyar Fejlesztési Bank Zrt.

❙ THE RESULTS OF MFB HUNGARIAN DEVELOPMENT BANK PRIVATE LIMITED COMPANY
maintained compliance with legislation in 2011 and observed the
limits of prudential operation and those set by internal policies.
Moreover, the Bank has suitable liquidity reserves maintained
to manage extraordinary situations. The Bank is renewing the
liabilities side of its balance sheet in line with the provisions of
its medium term strategy and continues to provide liquidity on an
ongoing basis.
The liquidity position of the Bank also improved through
several rounds of capital contribution in 2011. All in all HUF 130
billion of capital was injected in three stages during the year, which
increased the Bank’s solvency margin and its capacity to accept
risk substantially. The present level of the Bank’s solvency margin
should be sufficient to ensure the efficient implementation of the
Bank’s business development responsibilities.
The Bank continued to manage its costs with a view to
savings in 2011. It completed a review and renewal of service level
agreements under a cost rationalisation programme designed
to establish what type of services were actually needed and to
procure them at least cost. The Bank broadened the duty to save
costs to cover the whole strategic MFG group and embarked on
common procurement to mitigate the cost of necessary goods and
services.
The organisation of the Bank was restructured in January 2012
with a view to promote the implementation of the medium term
strategy and to improve the efficiency of business processes. The
Bank gives priority to cost savings, transparency and accountability
in corporate governance with special emphasis on observing, and
giving full effect to, the guidelines of EU grant schemes.
16 MFB ANNUAL REPORT 2011