MNB Tops Green Central Banking Ranking

MNB

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The National Bank of Hungary (MNB) has scored higher than any G20 central bank in a self-assessment of policies supporting sustainable financial practices, MNB said on Monday.

MNB conducted the self-assessment of its environmental sustainability efforts using the Green Central Banking Scorecard developed by Positive Money, a London-based nonprofit research organization that tracks the progress of central banks in G20 countries towards supporting the green transition by greening their policies and practices. 

The self-assessment checked and validated by Positive Money, showed the NBH would be ahead of all G20 countries in the Green Central Banking Scorecard ranking.

The evaluation shows the MNB "has firmly asserted itself as a leading advocate for sustainability and responsible financial practices", Positive Money said, acknowledging the NBH's comprehensive climate strategy covering actions it is taking to integrate climate considerations into its monetary policy, financial stability, and research functions.

MNB has taken a number of policy initiatives in the interest of greening the economy, including the Green Mortgage Bond Purchase Program, the Green Home Program, the green preferential haircuts in collateral framework, the build-up of a dedicated green bond portfolio, and the Charter of Sustainable and Responsible Investment concerning the management of foreign exchange reserves, the central bank noted.

In its role as financial market watchdog, MNB has taken regulatory actions such as the Green Recommendations to the financial and insurance sectors, the Green Preferential Capital Requirement Program and climate stress tests, while implementing macroprudential policies such as amendments to the Mortgage Funding Adequacy Ratio regulation, it added.

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