Preferential capital requirements support green finance
Nine lenders, representing 58% of the banking sector’s balance sheet, benefited from the preferential capital requirements for green financing put in place by the National Bank of Hungary (MNB) earlier in the year, the central bank said.
The MNB released some or all of the Pillar 2 capital requirements for environmentally sustainable business and municipal exposures with the aim of increasing the share of sustainable industries on bank balance sheets.
The bank said the measure supported HUF 93 billion in spending on solar park projects as well as HUF 40 billion underwriting green corporate bonds.
The central bank has said it will launch a HUF 200 billion green mortgage program for energy-efficient homes in October. The program could support home purchases by “tens of thousands” of families, he said.
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