Bank of Greece Tightens Oversight on Servicers Managing Securitized Loans Under "Hercules" Program

12:20 6/3/2025 - Πηγή: Dikaiologitika

The Bank of Greece is ramping up its oversight of servicers managing securitized loans under the "Hercules" asset protection scheme, introducing stricter reporting and supervisory frameworks.

The central bank has issued a decision outlining new data submission requirements for managing securitized claims under Regulation (EU) 575/2013. The decision has been officially published in the Government

Gazette.

The new regulation applies to loan and credit management companies that have undertaken a Significant Risk Transfer (SRT). The SRT securitization framework allows financial institutions to reduce balance sheet burdens by transferring the risk of part of their loan portfolios to investors. This, in turn, enables them to benefit from lower regulatory capital requirements.

Under the new directive, loan management companies must submit monthly and quarterly supervisory reports for each securitization backed by a state guarantee. Monthly reports must be submitted by the last working day of the month following the reporting period, while quarterly reports are due by the last working day of the month following the end of each quarter.

This decision repeals previous regulations governing securitization reporting and establishes that the first submission of the new data will cover information up to March 31, 2025.

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