In connection with the central bank liquidity providing operations the basic requirement is that credit can be granted only against appropriate collateral. The MNB publishes the collateral values for securities acceptable as collateral daily on its website.
The MNB is committed to integrate green aspects in its collateral management system. To this end, the MNB introduced a preferential green haircut in September 2021, which provides a 20 percent discount with a maximum value of 5 percentage points for green securities. To further strengthen green aspects, develop the domestic green securities market and consolidate best practices, the application of preferential haircuts for green securities from September 2022 has been made conditional on the fulfillment of transparency conditions. At the same time, in addition to green securities, the MNB also introduced preferential haircuts for non-green assets if the issuer publishes relevant climate reports. To further increase transparency, the MNB has required mortgage bond issuers to supplement their quarterly transparency report with a green section, in which the relevant green parameters for the loan portfolio must be specified. These data greatly support measurability and the quantification of climate impact, which is fundamentally necessary for the application of any methodology. More details of the collateral management framework and the range of acceptable collateral can be found here.