Updated Loan Securitization Guidelines
The Central Bank has amended its directives governing loan collateral management and property revaluation costs during loan restructuring. Published in the Official Gazette of the Republic, the changes update the regulatory framework for credit institutions and apply to both new lending and modifications of existing credit facilities.
Under the revised rules, collateral linked to a secured loan must be released immediately once the facility has been repaid, except in cases involving mortgaged real estate. In those instances, the release of collateral remains subject to the procedures and timelines set out in legislation governing property transfers and mortgages. Title deeds must be returned to the borrower or the holder of the collateral unless written consent has been provided to keep the mortgage in place. If that consent is later withdrawn, the mortgage holder must remove the mortgage within the timeframe established under the relevant legislation. Recent amendments also clarify responsibility for property revaluation costs during loan restructurings. Appraisal expenses will generally be borne by the lending institution unless the loan agreement specifies otherwise.
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Evolving Framework For Electronic Money
A separate directive published by the Central Bank introduces updated governance requirements for electronic money institutions. New rules set out standards for internal controls, risk management procedures and compliance monitoring. Institutions will be required to establish systems for identifying, assessing and reporting risks, including those related to regulatory compliance.
Additional provisions strengthen internal audit requirements and compliance procedures aimed at preventing money laundering and terrorist financing. Together, the measures form part of the Central Bank’s broader effort to update regulatory standards across the financial sector and strengthen oversight of credit and electronic money institutions.
