Objectives and Responsibilities of the Financial Stability Board
The objective of the Financial Stability Board (hereinafter referred to as „FSB”)
is to ensure harmony between micro-prudential regulatory supervision of the individual
risks of institutions operating in the financial intermediation system on the
one hand and macro-prudential regulatory oversight, which monitors systemic risks
posing a threat to the entire financial system, on the other.
The FSB is a consultation body consisting of the President of the Hungarian Financial
Supervisory Authority (hereinafter referred to as „HFSA”), the Governor of the
Hungarian National Bank (hereinafter referred to as „HNB”), and the minister in
charge of the money, capital and insurance markets (currently the Minister for
In the interests of ensuring the stability of the financial intermediation system
as a whole, it distributes information and consults on the strategic, regulatory,
risk-related and other theoretical issues affecting the entire financial system
and issues opinions if necessary. Opinions of the FSB affecting the stability
of the entire financial system shall be adopted unanimously.
As necessary, the FSB shall place on its agenda the recommendations, opinions,
risk warnings of the European Systemic Risk Board which are relevant for the Hungarian
financial system and shall debate any possible need for actions stemming therefrom.
The organizations represented in the FSB shall discharge their responsibilities
and obligations in accordance with the relevant acts and under no circumstances
shall their representation in the FSB result in any infringement on their rights
and obligations as stated by law.
The FSB shall:
continuously monitor the stability of the entire domestic financial system and
of the financial markets, in the interests of financial stability objectives,
quantify the risk factors generated by general financial trends which potentially
threaten the entire system,
analyze the risks related to certain institutions or specific types of products
and the spread of such risks, which may represent a threat to the entire system,
follow the developments on international and European markets and emerging risks,
which may represent a threat to the Hungarian financial system as a whole, and
discuss any possible need for action,
if necessary, submit recommendations to the Government for the enactment of legislation
or the initiation of such, or to members of the Government for the enactment of
Operation of the FSB
Chairmanship of the FSB shall rotate annually between the minister in charge
of the money, capital and insurance markets, the President of the HFSA and the
Governor of the HNB.
The three organizations represented in the FSB shall carry out their work on
the basis of full equality, with all due respect to their responsibilities and
spheres of competence defined by law.
The FSB shall hold its meetings as necessary, but at least once every three months.
Meetings of the FSB shall be convened by its Chairperson. At the request of any
member of the FSB, a meeting must be convened within five working days.
The HFSA is responsible for attending to the secretarial duties related to the
operation of the FSB.
The FSB shall operate in accordance with the rules of procedure it establishes
The Secretariat of the FSB can be contacted by email: firstname.lastname@example.org