According to the Central Bank Act, the basic tasks of the Magyar Nemzeti Bank (hereinafter referred to as ‘MNB’) has expanded in point of maintaining and strengthening financial stability, on the other hand new instruments are available for these new tasks. Within this framework the Financial Stability Council of MNB has been established on 1st October, 2013.
The Financial Stability Council is a decision-making body of the MNB established by the new Central Bank Act (Act CXXXIX of 2013 on Magyar Nemzeti Bank), and its scope of competence includes, within the strategic framework defined by the Monetary Council, the decision-making concerning the tasks specified in Article 4 paragraphs (5) and (7) – (9).
The Financial Stability Council within its scope above-mentioned:
- continuously monitor the stability of the system of financial intermediation as a whole and of the financial markets in order to maintain the stability of the system of financial intermediation as a whole,
- take account of risk factors threatening the system of financial intermediation as a whole,
- analyse the risks related to certain types of institutions or products or to the spread of these which may represent a threat to the system of financial intermediation as a whole,
- monitor developments on international and European markets and risks which may represent a threat to the stability of the system of financial intermediation as a whole, and make a decision on the necessary measures within the strategic framework defined by the Monetary Council,
- discuss strategic, regulatory and risk-related issues affecting the system of financial intermediation as a whole and issues opinions if necessary,
- in situations threatening the stability of the system of financial intermediation as a whole, assess systemic risks and decide on the measures required to reduce or eliminate such risks,
- as necessary, place on its agenda the recommendations, opinions and risk warnings of the European Systemic Risk Board relevant for the system of financial intermediation as a whole,
- discuss the recommendations and decisions issued by the European Supervisory Authorities as needed, including decisions addressed to national supervisory authorities calling for specific measures in the event of serious jeopardy to the stability of the European financial system and express its opinion on the tasks arising from such decisions,
- publish non-binding recommendations for the persons and bodies covered by the acts defined in Article 39 describing the grounds of jurisdictional principles followed by the MNB,
- annually define the priority target areas of the MNB’s control activities,
- make decisions in administrative proceedings relating to the exercise of supervision over persons, bodies and activities falling under the scope of the acts defined in Article 39, as defined in Article 4 (9), and
- make decisions in administrative proceedings relating to the exercise of resolution function according to Article 4 (8), defined in a separate Act.
The members of the Financial Stability Council:
- György Matolcsy, Governor of MNB
- Barnabás Virág, Deputy Governor - Monetary Policy and Financial Stability
- Dr. Mihály Patai, Deputy Governor - International Relations, Cash Logistics, Financial Infrastructure, Digitalisation and Credit Promotion
- dr. Csaba Kandrács, Deputy Governor - Financial Institutions Supervision and Consumer Protection
- Barna Fömötör, Director General
- Gergely Fábián, Executive Director - Financial System Analysis and Statistics
- Anikó Szombati, Executive Director - Digitalisation and FinTech Sector Development
- Ádám Banai, Executive Director - Monetary Policy and Foreign Exchange Reserve Management
- László Vastag, Executive Director - Prudential and Consumer Supervision of Financial Market Institutions
- dr. Gyula Vig, Executive Director - Authorisation and Enforcement
Postal address of the Financial Stability Council:
MNB, 1054 Budapest, Szabadság tér 9.