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

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8700