Featured Product

    MNB Welcomes Recommendations to Make Capital Markets Sustainable

    March 03, 2022

    The Hungarian National Bank (MNB) revoked the operating license of Sberbank Hungary Ltd and welcomed recommendations to make capital markets more sustainable.

    MNB ordered the winding up of Sberbank Hungary due to the serious liquidity and capital problems the bank was facing. The National Deposit Insurance Fund will reimburse all eligible customers their deposit claims up to EUR 100,000 within ten working days. The Single Resolution Board had also launched, on March 01, 2022, winding up proceedings of the parent of Sberbank Hungary, the Austrian Sberbank Europe AG. Additionally, MNB recently welcomed a set of recommendations, which were developed with financial support from the European Commission, as part of an advisory project to make capital markets more sustainable. The recommendations relate to non-financial reporting, development of the legal and regulatory framework of sustainable capital markets, landscape of sustainable investments and ecosystems, public funds to foster sustainable investments, and enablers and barriers of sustainable investments in capital markets. The key recommendations include the following:

    • Early implementation of Corporate Sustainability Reporting Directive (CSRD) by updating the existing environmental, social, and governance (ESG) Report guide of the Budapest Stock Exchange with the preliminary rules of CSRD to allow reporting in Hungary to pick up speed. T
    • Better transparency and disclosure of ESG data to the market so that the market participants are in compliance with European and national regulations on climate risk assessment, reporting or allocation of eligible green assets.
    • Raising of awareness among medium and large market players on reporting requirements, methodologies, and data needs.
    • Extension of the Green Preferential Capital Requirement regime to sustainability-linked bonds.
    • Consistency of ESG profiles of issuers with the sustainable investment offerings (because the risk of greenwashing might lead to divestment).
    • Definition of green default by determining a more appropriate term for the concept and assessing the potential for introducing financial penalties for such defaults to strengthen the credibility of the sustainable investments.
    • Encouraging the application of voluntary reporting standards until CSRD standards are not adopted by the European Union and Hungary, to generate potential sources of information for Regulation on sustainability‚Äźrelated disclosures in the financial services sector (SFDR disclosures).
    • Considering the introduction of minimal reporting requirements for companies not obliged by CSRD on certain relatively easily available ESG data such as GHG emissions (scope 1 and 2) to spread sustainable finance products.

     

    Keywords: Europe, Hungary, Banking, Sustainable Finance, Sberbank, CSRD, NFRD, SFDR, ESG, Climate Change Risk, Resolution Framework, Disclosures, Reporting, Basel, MNB

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206