Hungary Central Bank VP Balog Quits to Become MKB Bank Chairman

Adam Balog, the senior vice president of Hungary’s central bank, resigned from his position to become the chairman and chief executive officer of state-owned MKB Bank.

Balog’s resignation takes effect on July 22, the central bank said in an e-mailed statement on Monday. Prime Minister Viktor Orban has the right to nominate Balog’s successor.

Balog, a protege of National Bank of Hungary President Gyorgy Matolcsy, was in charge of monetary policy, financial stability and credit growth, making him the most powerful of the three vice presidents at the central bank. Prior to joining the regulator in 2013, Balog was a deputy state secretary at the Economy Ministry from 2010 under Matolcsy’s leadership.

Marton Nagy, executive director at the central bank in charge of financial stability, may succeed Balog, Vilaggazdasag newspaper reported on July 7, without citing anyone.

Hungary’s government purchased MKB Bank last year from Bayerische Landesbank to boost local ownership in the country’s lending industry. The cabinet may sell the bank within a year, preferably to Hungarian owners, Economy Minister Mihaly Varga told Figyelo weekly on July 9.

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