Rethinking Central Banks: A New Approach for Green Transition
The Deputy Governor of the National Bank of Hungary, Barnabás Virág, emphasized the importance of the green transition during a conference in London on Monday. He stated that while the transition presents both challenges and opportunities, it is crucial for central banks to adopt a new approach to ensure its success.
Virág highlighted the need for significant investments to put economies on a sustainable path without further delay. He stressed that central banks, as key players in the global financial system, must integrate environmental sustainability into their operations. The increasing impact of global warming not only affects inflation rates but also creates economic unpredictability and social issues.
The deputy governor pointed out that the climate’s unpredictability can harm corporate profitability and expose the vulnerabilities of the financial system. He emphasized the importance of accelerating the transition to a sustainable economic model as a responsibility to future generations.
Virág also mentioned that the National Bank of Hungary is a global leader in incorporating sustainability into its operations, and they are committed to maintaining this position. Last week, the Hungarian central bank took additional steps towards sustainability, as detailed in a previous article.
In related news, tensions between the Hungarian government and the National Bank have resurfaced, indicating potential challenges in their collaboration. Stay tuned for more updates on this developing story.
