Regulatory AlertsHungary: lending & credit regulation
RegulatedHungary: Lending regulated by MNB under Act CXII of 2001; strict licensing required
- Lead regulator
- Magyar Nemzeti Bank (MNB)
- Also involved
- NAIH (Data Protection) · MNB (AML/CFT via FIU)
- Core law
- Act CXII of 2001 on Interest Rate and Charges
- Entry capital
- HUF 1.5 billion (Credit Institution)
- Approval timeline
- 6-12 months for credit institution license
- Customer assets
- Segregated accounts required for client funds
- Data protection
- GDPR + Act CXIII of 2011 · NAIH
- Sandbox
- No
Lending activities are strictly regulated by the Magyar Nemzeti Bank (MNB). Foreign entities must establish a local subsidiary or branch to operate legally. Consumer credit is heavily protected under Act LXXVII of 2014, while general lending falls under the Credit Institutions Act. The regulatory environment is mature, with MNB actively supervising risk management and IFRS 9 compliance.
The MNB requires robust capitalization and governance. There is no specific 'lending license' distinct from credit institution authorization; however, non-bank lenders must navigate specific registration and capital requirements under the Credit Institutions Act and related MNB regulations. The trend is towards tighter supervision of non-bank credit providers and enhanced consumer protection.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | LicenceCredit Institution License Requires full credit institution license; Act LXXVII/2014 applies | HUF 1.5 billion | 6-12 months | Magyar Nemzeti Bank (MNB) |
| SME / commercial lending | LicenceCredit Institution License Same license as consumer; corporate lending rules apply | HUF 1.5 billion | 6-12 months | Magyar Nemzeti Bank (MNB) |
| Microfinance | LicenceCredit Institution License No specific microfinance license; standard credit institution rules | HUF 1.5 billion | 6-12 months | Magyar Nemzeti Bank (MNB) |
| Buy-now-pay-later | LicenceCredit Institution License Treated as consumer credit; requires full licensing | HUF 1.5 billion | 6-12 months | Magyar Nemzeti Bank (MNB) |
| P2P lending platform | LicenceCredit Institution Licenseverify with regulator Platform acting as lender requires license; intermediary model unclear | HUF 1.5 billion | 6-12 months | Magyar Nemzeti Bank (MNB) |
| Credit bureau / scoring | RegistrationCredit Bureau Registration Credit bureaus must register with MNB under Act CXII/2001 | — | — | Magyar Nemzeti Bank (MNB) |
| Debt collection | LicenceCredit Institution Licenseverify with regulator Debt collection by non-banks is restricted; requires license | HUF 1.5 billion | 6-12 months | Magyar Nemzeti Bank (MNB) |
New — what changed recently
Market-entry checklist
- 1Establish local legal entityIncorporate a Hungarian subsidiary or branch to apply for MNB authorization.
- 2Secure minimum capitalDeposit HUF 1.5 billion as initial capital for a credit institution license.
- 3Submit MNB license applicationProvide business plan, governance structure, and compliance frameworks to MNB.
- 4Register as credit bureauIf operating a scoring service, register with MNB under Act CXII/2001.
- 5Implement IFRS 9 complianceAdopt MNB-standardized impairment accounting and risk stage definitions.