Central Bank of Hungary (MNB)
Basic Information
The Central Bank of Hungary, known as Magyar Nemzeti Bank (MNB), serves as the country’s central bank and primary financial regulatory authority. Established on June 24, 1924, it operates under the European System of Central Banks (ESCB) framework. The MNB is headquartered at Liberty Square in Budapest, Hungary, and is responsible for monetary policy, financial stability, and the supervision of financial institutions, including forex brokers operating within Hungary.
Historical Background
The MNB traces its origins to the Austro-Hungarian Bank, with its modern form emerging after Hungary’s financial reconstruction under the League of Nations in 1924. It initially introduced the Hungarian pengő before transitioning to the forint in 1946 following hyperinflation. During the Communist era, the MNB operated as part of a state-controlled banking system but regained independence in 1991. Since Hungary’s EU accession, the MNB has aligned its regulatory framework with MiFID II and other EU financial directives, ensuring compliance with international standards.
Legal Authority and Regulatory Framework
The MNB derives its regulatory powers from Hungarian and EU legislation, including:
- Act LVIII of 2001 on the Magyar Nemzeti Bank, defining its monetary policy role
- Act CXXXIX of 2013 on financial supervision consolidation
- EU MiFID II directives for forex market regulation
- AML/CFT regulations under Act LIII of 2017
The bank issues binding decrees, such as Decree 26/2020 on AML implementation for supervised entities, and maintains authority over licensing, supervision, and enforcement actions.
Key Responsibilities and Regulatory Scope
The MNB’s core functions include:
- Monetary policy implementation and price stability maintenance
- Financial institution licensing and supervision (banks, insurers, forex brokers)
- Foreign exchange market regulation and oversight
- Payment system oversight and financial infrastructure stability
- AML/CFT supervision for financial sector participants
For forex brokers, the MNB enforces minimum capital requirements (€125,000), MiFID II compliance, and ongoing operational standards including risk management and client fund protection measures.
Contact Information
Headquarters Address:
Magyar Nemzeti Bank
1054 Budapest, Szabadság tér 8-9., Hungary
General Inquiries:
Phone: +36 1 428 2600
Email: [email protected]
Supervisory Department:
Phone: +36 1 428 2755
Email: [email protected]
Forex Licensing Inquiries:
Phone: +36 1 428 2700
Email: [email protected]
Regulatory Verification Method
To verify a financial entity’s MNB authorization status:
- Access the MNB’s official website at mnb.hu
- Navigate to the “Supervision” section
- Select “Register of Supervised Entities”
- Search by company name or registration number
- Cross-check the displayed authorization details with the entity’s claims
The MNB updates its register regularly, and consumers should report discrepancies to the Supervision Department immediately.
