Magyar Nemzeti BankPrint
Magyar Nemzeti Bank
Magyar Nemzeti Bank (MNB) is the central bank of Hungary. As the first independent Hungarian central bank, the Central Bank of Hungary, commenced its operations in 1924.
The primary objective of the MNB is to achieve and maintain price stability. Without prejudice to this primary objective, the MNB supports the economic policy of the Government, using the monetary policy instruments at its disposal. Since 1 October 2013, the MNB has also been responsible for supervising the whole Hungarian financial sector.
Further tasks of the MNB are:
- holding and managing official reserves in foreign currency and gold
- developing and monitoring the payment and settlement systems
- issuing forint banknotes and coins (exclusive right of cash issuance)
- collecting and publishing statistical information
- setting and publishing official exchange rates and
- promoting the stability of the financial system.
The MNB being entrusted with the supervision of the whole Hungarian financial sector is the result of a longer process of supervisory consolidation, which started back in 1997, when the banking and securities supervisory authorities have been first merged. In 2000 a fully consolidated supervisory authority: the Hungarian Financial Supervisory Authority has been established, also including insurance and pension fund supervision. The 2008 financial crisis showed that the functioning of supervisory authorities responsible for financial supervision and stability might be further developed in many different ways. This led to the review and reorganisation of the financial supervisory structures in many countries. In Hungary, the Parliament decided to initiate the integration of the financial supervisory function into the MNB from 1 October, 2013. The new structure allows for better cooperation between micro- and macro-prudential supervision (together with further central bank functions) and enhances the MNB’s ability to address systemic risk and to react on developing issues in a fast and effective manner. Since 2013 the MNB – as the new Hungarian financial supervisor – has made several efforts to become a well-known and respected member of the European and international supervisory community that is able to shape the financial system in a well-defined and effective manner. The MNB aims to create a stable, competitive, prudent and transparent financial sector that enjoys a high level of public trust. In this last period, financial supervision has been reformed both regarding its structure and toolkit. Due to these changes the MNB has managed to develop a stricter and more forward-looking approach, which puts great emphasis on consumer protection and quick, definite reactivity.