The role of Hungarian banks in sustainable development and the promotion of a sustainable mentality to their partners and customers.

Tamás Áron (2021) The role of Hungarian banks in sustainable development and the promotion of a sustainable mentality to their partners and customers. Külkereskedelmi Kar.

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Absztrakt (kivonat)

SUMMARY  To test the hypothesis that Banks will be able to develop in time to be the leaders in the transition process and bear a significant part in the education of the public. The research collected relevant professional literature and legal aspects, examined the leading Hungarian Banks' current status, and conducted interviews with their sustainable executives. The thesis also gathered information from the top Hungarian firms' CEOs and managers, where the main focus will be sustainability, to reach a comprehensive understanding of the behavioural and decision-making changes regarding the status quo (the reference year of 1990). The result has shown that banks have the role that the thesis has hypothesised: Banks will be critical components of the international and domestic market's green transitioning and sustainable development. The tools are not only financial but also involve counselling and education. Every company in the world is experiencing the acute effects of sustainability, and the market demands changes in the light of the Sustainable Development Goals by the United Nations Organisations. Nowadays it became prestigious if a company is sustainable, thus bearing reputational risk, but this also gives space for greenwashing. Regulators are making stricter rules, yet the process seems slow and unorganised. This study aims to gather knowledge about Hungarian Banks and their role in green transitioning. Specifically, the thesis examined how banks influence society and their financed companies. Most importantly, how they handle the points of Green Recommendation by the Hungarian Central Bank (MNB) and how it affects their partners and investors. Quite problematic, however, that banks lack the data and gathering methods, so there is a low amount of data available for the thesis. If the standardisation happens, they will be keenly ready to adapt to the requirements, as it would be in everyone's best interest. Until then, everyone keeps developing what they can. The real problem is that banks are far from real breakthroughs. When the world started to fight against terrorism and money laundering, banks were overregulated. It resulted in a great and costly system, that have not achieved much in terms of numbers. Until they see the exact and detailed supervisory regulations, there will be no consistency, because as long as no one knows what the expectation will be, no one will invest to the changes, only the safe and most conspicuous ones like the energy sector. We will have to see how the regulations guide the future of this case. For now, the regulations and recommendations seem supportive, and the tone is just right. The MNB tries to encourage the Hungarian financial industry to embrace the changes with great programs like the bond growth program or the green loans for housing, but if we want to see real changes, we have to stay on this path. If they decide to punish and forbid, it will cause a gradual increase in costs in terms of capital and return, and the state of the banking system could deteriorate because the minimum capital adequacy requirement will rise. The results show that society is likely to reach carbon neutrality by 2050 if the Banks' operation and financed portfolios are regulated first. However, barriers still need a breakthrough in standardisation and legislation on data gathering and measurements. On this basis, Banks are the centre of sustainable development, and their appropriate participation is purely essential. One sentence worth paying attention to is that the demand is higher than expected. Most companies were cautious about transitioning, but the market's feedback has started to show support from society. Good SDG ratings bring higher returns with lower risks, and it will be worth it for the investors as well. The most outstanding matter that has to be taken care of is the regulation side of the story. Everyone can start their part until these international regulated standards are finalised and ready to be adopted. The findings have reassured it that this standardisation process is expected to be completed in the next one or two years, significantly advancing domestically and globally. The most remarkable correlation is the market's unexpected demand for ETFs connected to sustainability and social causes, with green bond releases or the fortification of the green loans' background. As examined, the market movers have already realised this, expecting these financial products to become commonplace in the upcoming years. The way how the Hungarian market changed in this direction is promising. If the companies and institutions continue to put as much effort as before, Hungary will be in an excellent position to profit off and help the transitional process.

Intézmény

Budapesti Gazdasági Egyetem

Kar

Külkereskedelmi Kar

Tanszék

Nemzetközi Gazdaságtan Tanszék

Tudományterület/tudományág

NEM RÉSZLETEZETT

Szak

Nemzetközi gazdálkodás

Konzulens(ek)

Mű típusa:	diplomadolgozat (NEM RÉSZLETEZETT)
Kulcsszavak:	banks and banking, banks and banking government policy, financial culture, Hungary, sustainability, sustainable development
SWORD Depositor:	Archive User
Felhasználói azonosító szám (ID):	Archive User
Rekord készítés dátuma:	2022. Már. 08. 09:06
Utolsó módosítás:	2022. Már. 08. 09:06

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