Recommendation No. 7/2026 (June 25) of the Magyar Nemzeti Bank on the definition of the concept of group of connected clients under Regulation 575/2013/EU

The Magyar Nemzeti Bank establishes expectations for credit institutions and investment firms regarding the identification of groups of connected clients under Article 4(1)(39) of the CRR. Institutions must treat entities with control relationships or economic dependence as a single risk factor, applying specific criteria for control such as majority voting rights or board appointment powers, and indicators of economic dependence like significant guarantees, revenue concentration, or shared collateral. A threshold requiring detailed investigation of economic dependence is set at exposures exceeding 5% of the institution's core capital, while alternative methods are permitted for exposures to central governments. The recommendation applies to domestic institutions and branches of third-country entities operating in Hungary.

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Recommendation No. 7/2026 (June 25) of the Magyar Nemzeti Bank

on the definition of the concept of group of connected clients under Regulation 575/2013/EU

I. Purpose and Scope of the Recommendation

The purpose of this recommendation is to articulate the expectations of the Magyar Nemzeti Bank (hereinafter: MNB) regarding the definition of the concept of "group of connected clients" (client group) as defined in point 39 of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions (hereinafter: CRR), thereby increasing the predictability of legal application and facilitating the uniform application of relevant legislation.

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Source: Magyar Nemzeti Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works