RegAlert2026-07-29
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Recommendation of the Magyar Nemzeti Bank No. 10/2026 (July 29) on Requirements for On-Balance Sheet Simple, Transparent and Standardised Securitisation
The Magyar Nemzeti Bank establishes specific supervisory expectations for on-balance sheet Simple, Transparent and Standardised (STS) securitisations, requiring that underlying exposures be held on the balance sheet of the originator or its consolidated group. The regulation prohibits multiple credit risk hedging, defines active portfolio management, and mandates strict homogeneity, regular payments, and transparency regarding credit terms. It further imposes detailed criteria on the originator's expertise, including board experience and risk assessment procedures, while banning non-performing exposures and exposures to borrowers with adverse credit histories.
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Recommendation of the Magyar Nemzeti Bank No. 10/2026 (July 29) on Requirements for On-Balance Sheet Simple, Transparent and Standardised Securitisation
I. Purpose and Scope of the Recommendation
The purpose of this Recommendation is to formulate the expectations of the Magyar Nemzeti Bank (hereinafter: MNB) regarding the criteria for qualifying on-balance sheet Simple, Transparent and Standardised (STS) securitisation, 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
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