MNB Publishes Guidelines on Issuance of Green Bonds
The Magyar Nemzeti Bank (MNB) of Hungary published guidelines to help firms and investors in the issuance of additional market-based green bonds after the closure of the Growth Bond Program (also known as NCP). The NCP Program aimed to expand the market liquidity of bond market. Within the framework of NCP Program, market participants could purchase both traditional and green corporate bonds, which continue to be the primary means of attracting sustainable capital market resources. The guidelines on green bond issuance cover the main steps, documentation requirements, and key differences between the issuance of green bonds and the issuance of traditional corporate bonds.
The guidelines aim to provide potential issuers with an overview of the specific steps involved in issuing a green bond, to assess their time and resource requirements, and to identify stakeholders inside and outside the organization that need to be involved in a successful issuance. By issuing these guidelines, MNB seeks to encourage an increase in the share of sustainable commercial banking assets, including a reduction in corporate and municipal green capital requirements, which can strengthen bank demand for green bonds by reducing the cost of capital for bank green bond subscriptions. In addition to the environmental and public relations value of sustainable activities, green bonds have a strong capital market demand, as a result of which more favorable returns than traditional corporate bonds can be achieved in most cases. The demand for institutional investors in green bonds is strengthened by the proliferation of ESG funds, whose investment policies focus on investments in sustainable, social and responsible corporate governance.
Related Links
Keywords: Europe, Hungary, Banking, Sustainable Finance, ESG, Green Bonds, MNB
Previous Article
SRB Updates MREL Policy and Publishes Other UpdatesNext Article
EBA Clarifies Issues Raised on APIs Under PSD2Related Articles
EBA Sets Out Roadmap for 2023, Updates Reporting Framework 3.2
The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.
FED Announces Launch of Climate Scenario Analysis Exercise in 2023
The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.
BIS Paper Studies Impact of Fintech Lending on Small Businesses in US
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
EBA Launches EU-Wide Transparency Exercise in 2022
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
EC Rule Lists Advanced Economies for Market Risk Capital Calculations
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
