MNB Technical Cooperation Programme 2024 From Tradition to Innovation

The MNB Technical Cooperation Programme 2024 commenced with a seminar on Cash Logistics

From March 18 to 22, 2024, the Magyar Nemzeti Bank (MNB) initiated the second year of its Technical Cooperation Programme with a new topic of significant interest. Launched in 2023, the programme is designed to enhance professional collaboration among central banks and to showcase MNB's best practices to its partners.

During seminar titled "Innovation and Cash – How is it possible? Cash management practices at MNB", experts from 18 countries across the Balkans, Caucasus, North Africa, the Middle East, Central Asia, and Southeast Asia gathered to explore the best practices of cash logistics of Hungary.

Since its establishment in 2008, the MNB Logistics Centre, along with the operational model and regulatory frameworks developed and maintained by the MNB for the domestic cash cycle, has become a significant reference point for numerous central banks worldwide. Between 2010 and 2024, representatives from 28 central banks visited the Logistics Centre on a total of 76 occasions to study MNB's operations, process development, and regulatory solutions, with the aim of applying this knowledge to develop and modernize their own cash logistics systems.

This global interest led to the establishment of the MNB's cash logistics seminar within the Technical Cooperation Programme. The seminar offered participants practical insights into various aspects of the cash supply chain, the development of the Hungarian cash cycle's regulatory framework, and initiatives related to the development and anti-counterfeiting measures of Hungarian banknotes. In addition to acquiring knowledge about the operations of the MNB Logistics Centre, participants were provided with comprehensive information on the banknote and coin production and the commemorative coin issuance. The cash logistics experts were introduced to cash demand forecasting methods, as well as qualitative and quantitative research methodologies, thus expanding their theoretical knowledge and practical experience.

Themed “From Tradition to Innovation”, the MNB Technical Cooperation Programme offers three more seminars in 2024:

22-25 April: Green and Sustainable Finances – Introducing the MNB’s Green Program

14-17 October: Financial Infrastructures, Payments and Digitalisation

25-28 November: Monetary Policy Instruments and Crisis Management

Green finance and sustainability were the main focus at the Magyar Nemzeti Bank’s Technical Cooperation Programme for partner central banks

The 2024 Technical Cooperation Programme of the Magyar Nemzeti Bank continued with the seminar titled „Green and Sustainable Finances – Introducing the MNB’s Green Program” from 22 to 25 of April 2024 in Budapest. The aim of the MNB's initiative launched in 2023 is to strengthen the international relations, to enhance cooperation with the MNB's partner central banks, and to encourage dialogue on central banking issues. All over the word, central banks and financial supervision institutions are facing new challenges and responsibilities due to climate change, sustainable operation, and the intensification of environmental issues. Therefore, for the second time, MNB presents an opportunity to share knowledge and experience on these topics in the framework of an intense multi-day training.

The MNB has launched its Green Program in 2019 to mitigate the risks associated with climate change and other environmental problems, to expand green financial services in Hungary, to widen the related knowledge base in Hungary and abroad, and to reduce financial market participants’ and its own ecological footprint. In 2021 the objectives were extended by supporting the Government's policy related to economic and environmental sustainability with the MNB’s instruments. To fulfil this mandate, the MNB developed also a green monetary policy toolbox in addition to the Green Program.

During the four-day seminar, central bank experts coming from 15 countries around the world - including the Philippines, Cambodia, Indonesia, Oman and the Balkan countries - were able to learn about these unique programs and gain comprehensive and in-depth knowledge about the sustainability efforts of the MNB's operation, its carbon footprint reduction program and the implementation of its climate stress tests, among other topics.

The seminar also presented the most pressing issues of greening the monetary policy and the management of climate risks, additionally participants could gain insight into the practical part of these efforts through group assignments. In addition to colleagues from the MNB, guest speakers also attended the seminar, drawing attention to the impact of physical risks on the development of financial risks.

The MNB’s Technical Cooperation Programme under the theme „From Tradition to Innovation” offers two additional seminars this year:

on 14-17 October: Financial Infrastructures, Payments and Digitalisation

on 25-28 November: Monetary Policy Instruments and Crisis Management

Financial infrastructures and digitalization were the theme at the third session of MNB’s international knowledge-sharing seminar series

Between October 14-17, 2024, the Magyar Nemzeti Bank (MNB) continued its 2024 Technical Cooperation Programme with a seminar titled "Financial Infrastructures, Payments, and Digitalization" in Budapest. Foreign experts representing 19 central banks and supervisory authorities attended, among others from the Philippines, Thailand, Cambodia, Georgia, Tunisia, Kuwait, Oman, and Western Balkans. The MNB's Technical Cooperation Programme, launched in 2023, aims to strengthen international professional exchange of view, to foster cooperation with the MNB's foreign partners, and to promote dialogue on central banking issues.

Given its particular importance and relevance, the topic of payment infrastructures and digitization was included also in the programme offering in 2024, after 2023. The seminar focused on key topics such as the modernization of financial infrastructures, innovative payment systems, the Hungarian FinTech ecosystem, and the MNB's digitalization initiatives. Electronic payment solutions have seen dynamic growth in recent years and have become essential elements of a modern, internationally competitive economy. MNB speakers provided detailed presentations of the Hungarian Instant Payment System, one of the central bank's flagship projects, which has revolutionized Hungarian payments and resulted in the successful digital transition of the banking sector, marking the largest financial innovation in Hungary in the last thirty years.

The 28 foreign central bank experts were also introduced to the tools implemented to reduce fraud in the retail payment market, as well as the MNB's best practices in IT and cybersecurity, an increasingly important topic today. In the second half of the seminar, participants learned about Hungarian FinTech trends, MNB's technological initiatives, and its pilot program for Central Bank Digital Currency (CBDC). Through case studies, participants broadened their practical knowledge of the main factors influencing payment habits, best practices for promoting electronic payments, and oversight practices related to financial infrastructures.

As part of the MNB's Technical Cooperation Programme of 2024, under the theme "From Tradition to Innovation", one more seminar will be held this year, focusing on the topic of "Monetary Policy Instruments and Crisis Management," scheduled for November 25-28, 2024.

The MNB continued its Technical Cooperation Programme

As the final event of its Technical Cooperation Programme 2024, the Magyar Nemzeti Bank (MNB) held a seminar with a new topic titled “Monetary Policy Instruments and Crisis Management” from November 25 to 28, 2024 in Budapest. The initiative – launched in 2023 – aims to foster the MNB’s collaboration with its partners, facilitate the exchange of knowledge and financial dialogue among central banks. The Technical Cooperation Programme is built on the belief that knowledge-transfer and personal connections have a vital role in effective economic policymaking, financial stability and growth, therefore benefit all parties involved.

Recent crises periods are reshaping macro and market environment on a broad scale. Policymakers and central bankers need to understand to possible implications not only to their mandates, but on monetary policy implementation and prudential frameworks as well. During the 4-day course experts from 22 countries across the Balkans, Caucasus, North Africa, the Middle East, Central Asia, and Southeast Asia gathered to overview the MNB’s various crisis management practices covering a wide range of central bank functions and responsibilities. The lecturers also presented the policy responses of MNB to the coronavirus pandemic. Hungary’s financial system was prepared for the pandemic, thanks to the steps taken by the MNB in a timely, targeted, flexible and appropriate manner. The participants had the chance to learn about the role and functioning of monetary policy instruments through firsthand experiences and familiarize with the macro- and micro-prudential perspectives of managing liquidity crises in the banking sector. The seminar also presented the FX debt crisis and subsequent conversion of FX loans in Hungary, additionally participants could gain insight into case studies covering recent crisis times in different markets and conducting monetary policy in the times of crisis through group assignments.

During this year more than 110 central bank experts from 30 partner countries attended the four seminars. Building on this success, the MNB’s Technical Cooperation Programme will continue in 2025 under the theme “Stability in Transitions”, which reflects the delicate balance central banks must strike between ensuring stability and adapting to change.