Hungarian government proposes reforms to Magyar Nemzeti Bank oversight

The Hungarian government has submitted a legislative proposal to amend the Central Bank Act, aimed at restructuring the ownership oversight of the Magyar Nemzeti Bank (MNB).

The proposal introduces a new internal audit organization within the MNB that would operate under the direction of the supervisory board, functioning independently from the board of directors' own internal audit system. The chairperson of the supervisory board would hold employer rights over the new organization's leadership and experts, with operational funding provided by the MNB.

Key changes include expanded oversight powers for the supervisory board, which will also monitor companies in which the MNB holds a majority stake and foundations established by the bank. The amendment also modifies the selection process for the board: two members will be nominated by the Parliament's Budget Committee, two by the Economic Committee, and additional members will include a ministerial representative and an expert appointed by the minister. Members serve four-year terms, renewable once.