The Renewal of Banking Supervision

Kandrács, Csaba (2019) The Renewal of Banking Supervision. POLGÁRI SZEMLE: GAZDASÁGI ÉS TÁRSADALMI FOLYÓIRAT, 15 (Spec). pp. 93-115. ISSN 1786-6553

Preview

Text PSZ 2020. angol.szam_beliv_5.pdf Download (629kB) | Preview

Abstract

Financial supervision, including banking supervision, has evolved over the last hundred years in terms of both its institutional system and its methodology and approach. The biggest impact on development was caused by various economic crises and scandals at certain financial institutions. In order to be able to mitigate the impact of financial crises on the banking system and to detect and deal with banks’ problems in a timely manner, financial institutions must be subject to continuous supervision. The most recent era in Hungarian banking supervision began on 1 October 2013, when the Magyar Nemzeti Bank took over the role of the Hungarian Financial Supervisory Authority, thereby integrating micro-prudential supervision into the Hungarian central bank. Renewal can be identified throughout the set of instruments for Hungarian supervision, including continuous supervision and investigation methodologies. The entire set of instruments is characterised by a change of approaches, i.e. the reactive, “retrospective risk management” approach has been replaced by a proactive approach. As technology develops, it has become possible for the Supervisory Authority to use solutions that enable it to be present in the life of an institution without interfering with its business. In addition, the spread of digital channels has dramatically changed the financial habits of people and institutions. Information technology is becoming indispensable in more and more areas of life. Managing and monitoring the inherent risks is a major challenge that requires innovative solutions. The only constant is change. This paper presents a detailed overview of the latest supervisory developments and regulations.

Actions (login required)

Edit Item