RegAlert2026-02-02
Added
Executive Circular on the Application of the Infrastructure Support Factor and the Definition of Compliance Requirements
The Hungarian National Bank (MNB) establishes supervisory expectations for credit institutions regarding the practical application of the Infrastructure Support Factor (ISF), which allows a 25% capital requirement reduction for qualifying infrastructure financing exposures. The circular defines specific compliance criteria for borrowers, cash flows, and financing structures, including mandatory environmental alignment with the EU Taxonomy for exposures originated after January 1, 2025. It mandates rigorous stress testing, senior lender protection, and prudent risk management during construction and operation phases, while requiring quarterly reporting of ISF-affected exposures through the COREP framework.
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Executive Circular on the Application of the Infrastructure Support Factor and the Definition of Compliance Requirements
I. Purpose and Scope of the Executive Circular
The recipients of this executive circular are credit institutions subject to the scope of Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises, which are also subject to the scope of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (hereinafter: CRR) (hereinafter: Institution).
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Source: Magyar Nemzeti Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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