Preferential capital requirements support green financing

MNB

Image by Jessica Fejos

Nine lenders, accounting for 58% of the banking sector balance sheet, have availed of preferential capital requirements for green financing rolled out by the National Bank of Hungary (MNB) earlier in the year, the central bank said.

MNB released part or all of Pillar 2 capital requirements for environmentally sustainable corporate and municipal exposures with the aim of boosting the share of sustainable industries in bank balance sheets.

The bank said the measure has supported HUF 93 bln of outlays for solar park projects as well as the subscription of HUF 40 billion of green corporate bonds.

The central bank noted it would launch a HUF 200 bln green mortgage program for highly energy-efficient homes in October. The scheme could support home purchases by "tens of thousands" of families, it said.

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