Authorisation of the operation of credit institutions

A credit institution may commence operations (engage in financial services and ancillary financial services) in possession of an activity licence granted by the Magyar Nemzeti Bank (MNB).

Kulcsszavak: bank, specialised credit institution, initial capital, accounting policy, money laundering policy, business plan, operational risk

The resolution granting authorisation for the establishment of a credit institution becomes void if the credit institution fails to submit the application for activity license to the MNB within 6 (six) months of receipt of the resolution. No application for a remedy may be submitted if the time limit is missed. 

An application for a remedy may be lodged by any party who goes over a time limit or misses a legal deadline during the procedure for reasons beyond their control. In authorisation procedures, applications and notifications must be submitted, in addition to authenticated electronic copies of the relevant attachments, by using the electronic forms available on the ERA platform of the MNB’s website at the E-Administration / Licensing service. The MNB’s decisions, requests for supplementation, notices and other communications are delivered to financial institutions or their legal representatives via the customer’s electronic storage space.

Detailed information on e-administration and on the substantive and formal requirements of electronic documents can be found on the MNB’s website at the following link:

https://www.mnb.hu/letoltes/tajekoztatas-az-e-ugyintezesrol-az-mnb-elotti-engedelyezesi-eljarasokban-1.pdf

The provision of financial services and ancillary financial services without authorisation constitutes a criminal offence, and the MNB may commence a market surveillance procedure if it suspects engagement in any unauthorised financial activities.

If the MNB finds that an activity is performed without authorisation, it will

a) prohibit the activity,

b) initiate criminal proceedings if, in its opinion, a criminal offence is involved under the Act on the Criminal Code,

c) apply measures or exceptional measures, and/or

d) impose a market surveillance fine.

If the submitted application contains insufficient information, within 45 days of receipt of the application the MNB will request that the applicant to submit supplementary information. In the case of complete applications, the MNB will make a decision within three months of receipt of the application.

A detailed guide to the authorisation of the activities of credit institutions is available at: https://www.mnb.hu/letoltes/1-1-2-1-1-engedelyezesi-utmutato-hitelintezet-mukodesenek-engedelyezese.pdf 

A Q&A page on the authorisation procedure of the activities of credit institutions can be found on the following link: https://www.mnb.hu/letoltes/1-1-2-1-2-eljarassal-kapcsolatos-gyakori-kerdesek-es-valaszok-hitelintezet-mukodesi-engedely.pdf

Information about the policies on attachments to an application for the authorisation of activities for credit institutions can be accessed via the following two links: https://www.mnb.hu/letoltes/1-1-1-3-1-2-hitelintezetek-szamviteli-es-prudencialis-szabalyzatai.pdf

https://www.mnb.hu/letoltes/1-1-1-3-1-3-hitelintezetek-informatikai-szabalyzatai.pdf.

The authorisation procedure is subject

Additional information about the administrative service fee is available at the following link:

https://www.mnb.hu/letoltes/tajekoztatas-az-e-ugyintezesrol-az-mnb-elotti-engedelyezesi-eljarasokban-1.pdf.

Magyar Nemzeti Bank, Money and Capital Markets Licensing Department

The MNB’s decision (resolution or ruling) may not be appealed; however, customers whose rights or legitimate interests are directly affected by the decision may initiate administrative court proceedings within 30 (thirty) days of the disclosure of the resolution or ruling on the grounds of infringement, by submitting an application initiating proceedings to the Budapest-Capital Regional Court.

Legal representation is mandatory in the court proceedings. The application must be addressed to the Budapest-Capital Regional Court, and submitted electronically through the MNB’s form submission support service.

(The form submission support service can be accessed at: https://www.mnb.hu/felugyelet/engedelyezes-es-intezmenyfelugyeles/hatarozatok-es-vegzesek-keresese)

The submission of the application has no suspensive effect on the enforceability of the resolution or ruling, but the customer may request interim relief. As a general rule, the court rules in the proceedings without holding a hearing; however, the customer may request a hearing in the application. No application for a remedy may be submitted in the event of a failure to request a hearing.

An application for a remedy may be lodged by any party who goes over a time limit or misses a legal deadline during the procedure for reasons beyond their control.

Additional general information about the authorisation procedure is available at: https://www.mnb.hu/felugyelet/engedelyezes-es-intezmenyfelugyeles/engedelyezes/tajekoztatok

Have you found this information useful? Please tell us your opinion here!

Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises

Act C of 2000 on Accounting

Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing

Act CXXXIX of 2013 on the Magyar Nemzeti Bank (Central Bank of Hungary)

Government Decree No. 250/2000 (XII. 24.) on the special features of the annual reporting and bookkeeping obligations of credit institutions and financial enterprises

Decree No 40/2016 (X. 11.) MNB on the Prudential Requirements for the Rating of Customers and Counterparties, and for Collateral Valuation

Government Decree No 42/2015 (III. 12.) on the Protection of the Information Technology Systems of Financial Institutions, Insurance Undertakings, Reinsurance Undertakings, Investment Firms and Commodity Dealers

Decree No 14/2015 (V. 13.) MNB on the Administrative Service Fee of Certain Authorisation and Registration Procedures Performed by the Magyar Nemzeti Bank in the Framework of the Supervision of the Financial Intermediary System and with Regard to Fiduciary Asset Management Companies

MNB