Environmental, social and governance factors must also be considered in banks’ corporate governance and risk management systems

The Magyar Nemzeti Bank (MNB) has renewed its green banking recommendation, incorporating the European Banking Authority’s guidelines on the management of ESG risks, while retaining several domestic expectations that go beyond EU requirements. The new recommendation applies to domestic credit institutions, including third-country credit institution branches and licensed investment service providers. As for its entry into force, it will be implemented in two phases: from 1 July 2026, large and complex institutions will fall under its scope, while from 1 January 2027, the supervisory expectations set out in the green banking recommendation will also enter into force for the other market participants covered by recommendation.

The document in Hungarian can be found here.