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‐related 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

    NGFS Updates Address Short-Term Climate Scenarios and Transition Plans

    The Network for Greening the Financial System (NGFS) is exploring the development of short-term climate scenarios to complement its existing scenario framework of long-term climate scenarios.

    May 31, 2023 WebPage Regulatory News
    News

    ISSB Updates Address ESG Issues while IASB Consults on Impairments

    The International Sustainability Standards Board (ISSB) is seeking feedback, until August 09, 2023, on the exposure draft that sets out the methodology proposed by ISSB to amend the Sustainability Accounting Standards Board (SASB) Standards' metrics

    May 30, 2023 WebPage Regulatory News
    News

    ESRB Publishes Report on Cryptos and DeFi; ECB Updates on Digital Euro

    The European Systemic Risk Board (ESRB) published a report that outlines the systemic implications of crypto markets and proposes policy options to address the risks stemming from crypto-assets and decentralized finance or DeFi.

    May 26, 2023 WebPage Regulatory News
    News

    EU Agencies Issue Updates on DORA, ESAP, and Crowdfunding Regulation

    The European Supervisory Authorities (ESAs) published a discussion paper on their joint advice to the European Commission (EC) on proposals to specify criteria for critical information and communication technology (ICT) third-party service providers

    May 26, 2023 WebPage Regulatory News
    News

    UK Authorities Issue Updates, Finalize Policy on Model Risk Management

    The Prudential Regulation Authority (PRA) finalized the model risk management principles for banks, the policy statement PS5/23 on risks from contingent leverage, and PS4/23 on moving senior managers regime forms from the PRA Rulebook.

    May 25, 2023 WebPage Regulatory News
    News

    APRA Revises Implementation Timeline for Operational Risk Standard

    The Australian Prudential Regulation Authority (APRA) updated the implementation date of the new cross-industry prudential standard CPS 230 on operational risk management

    May 25, 2023 WebPage Regulatory News
    News

    BCBS Consults on Basel FAQs and Amendments, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) published a report assessing implementation of the global Basel standards on net stable funding ratio (NSFR) and large exposures (LEX) in South Africa

    May 25, 2023 WebPage Regulatory News
    News

    EBA Announces Multiple Regulatory and Reporting Updates in April 2023

    The European Banking Authority (EBA) published consultations on the amendments to the guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision

    May 24, 2023 WebPage Regulatory News
    News

    FSB Issues Statement on USD LIBOR Transition, Issues Other Updates

    The Financial Stability Board (FSB) released a report that offers insights into how financial institutions incorporate climate-related metrics into their compensation frameworks

    May 23, 2023 WebPage Regulatory News
    News

    ACPR Issues Updates on Reporting by Banks and on DLT Pilot Scheme

    The French Prudential Supervisory Authority (ACPR) published reporting updates for the banking sector

    May 22, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8896