1 Governance TCFD RECOMMENDATIONS – GOVERNANCE G/1 Describe the board’s oversight of climate-related risks and opportunities. G/2 Describe management’s role in assessing and managing climate-related risks and opportunities.
Pursuant to Act CXXXIX of 2013 on the Magyar Nemzeti Bank (MNB Act), the MNB supports the stability of the financial intermediary system, enhancing its resilience, ensuring its sustainable contribution to economic growth and, with the tools at its disposal, the Government’s policy on economic and, from mid-2021, environmental sustainability, without compromising its primary objective of achieving and maintaining price stability. The MNB was the first European central bank to be granted this so-called ‘green mandate’, by which the MNB’s statutory objectives now include the promotion of environmental sustainability, following a decision of the National Assembly. Chart 2 Organisational structure of the MNB
Monetary Council
Financial Stability Council Executive Board
Governor
Deputy Governor Monetary Policy and Financial Stability
Deputy Governor Financial Institutions Supervision and Consumer Protection
Deputy Governor International Relations, Cash Logistics, Financial Infrastrucures, Digitalization and Lending Incentives
Director General
The MNB’s decision-making bodies are the Monetary Council, the Financial Stability Council and the Executive Board (Chart 2). The senior management of the MNB are the Governor, the Deputy Governors and the Director General. Decision-making bodies and senior MNB executives are regularly informed of the impact of climate change and other environmental risks on the financial system and the MNB’s own operations, and they take measures to promote environmental sustainability. The MNB’s Green Programme was launched in 2019 following a decision by the Financial Stability Council and the Executive Board. The Monetary Council (MC) is the MNB’s supreme decision-making body. Pursuant to Article 9 (1) of the MNB Act, the powers of the MC include, inter alia, strategic decisions relating to monetary policy, the issuance of legal tender, the accumulation and management of foreign exchange and gold reserves, the management of foreign exchange reserves
THE MAGYAR NEMZETI BANK’S CLIMATE-RELATED FINANCIAL DISCLOSURE • MARCH 2022
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