MNB Revises Supervisory Strategy for Regulated Entities
The Hungarian National Bank (MNB) published the revised version of its supervisory strategy for the period up to 2025. In the revised strategy, the emphasis has been placed on ensuring and preserving the core values of the previous period, to maintain stability and confidence in the financial system. The revised strategy, also referred to as the “Stability and confidence 2.1,” focuses on consumer protection, environmental sustainability aspects, and responses to the challenges of digitalization.
The revised supervisory strategic framework is aligned with the Sustainable Balance and Catch-up program, announced in May 2022, and considers the proposals and tasks defined therein during the supervision of the financial intermediary system. MNB reviewed its supervisory priority and goals and adapted them to the current and newly predicted market risks. As part of the revised strategy, MNB aims to:
- further the development of supervisory stress tests, supervisory data flow, data transformation automation, data asset enrichment, and risk-focused supervisory communication and law enforcement.
- strengthen the effective crisis management toolkit.
- monitor the risks arising from the economic and market environment and their occurrence to incorporate the experiences of the post-COVID world into the models related to capital needs and capital supply forecasts.
- increase the resilience of institutions both in relation to cyber-security and money laundering and terrorist financing risks.
- revise the information technology-related supervisory regulatory tools as well as issue new tools, wherever necessary, to ensure legal certainty and the sustainability of trust in the financial intermediary system.
- provide relevant information about secure digital finances according to their own level of preparation and knowledge in order to strengthen the security awareness of digital finances.
- promote the environmental sustainability of the financial system by implementing a review of the Green Program, which is based on its detailed back-measurement results.
Keywords: Europe, Hungary, Banking, Basel, Regulatory Capital, Cyber Risk, Credit Risk, Cybersecurity, ML TF Risk, Operational Risk, ESG, Stress Testing, Supervisory Priorities, MNB
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