NBH issues recommendation on gauging ESG risk

Written by BT/MTI

The National Bank of Hungary (NBH) has issued a recommendation for lenders and financial companies on integrating ESG risks into credit risk, the central bank and financial market regulator said on Monday.

In the recommendation, the NBH instructs lenders to require corporate borrowers signing for loans over HUF 500m to fill in an ESG questionnaire to gauge risks. The practice is to be adopted from July 2025 and will gradually be applied to lower lending thresholds: HUF 350m from July 2026, HUF 200m from July 2027 and HUF 100m from July 2028.