Featured Product

    EC Welcomes Agreement on Changes to Securitization Rules in EU

    December 10, 2020

    EC welcomed the agreement between the European Parliament and European Council on targeted changes to the securitization framework and the Capital Requirements Regulation (CRR) in EU. These changes will apply immediately after their publication in the Official Journal of the European Union. The European Parliament and Council also agreed to solve an issue arising from a six-month time gap between the transposition deadlines of the Investment Firms Directive (IFD) and the investment firm rules contained in the Capital Requirements Directive (CRD5). Both these developments are part of the EU initiatives for making capital markets work for European recovery in response to the ongoing COVID-19 crisis.

    The amendments to securitization requirements create a specific framework for simple, transparent, and standardized on-balance sheet securitization that would benefit from prudential treatment reflecting the real risk of these instruments. In addition, these changes remove regulatory obstacles to securitizing non-performing exposures. These targeted changes were part of the capital markets stimulus package presented by EC in July 2020 and they encourage a wider use of securitization in the European recovery to free up bank capital and allow banks to continue lending, especially households and small and medium-size enterprises (SME). These amendments would be useful to allow banks to transfer certain risks to the markets so that they can continue to lend. The changes can also help banks deal with a possible increase in the non-performing exposures due to COVID crisis. 

     

    Related Links 

    Keywords: Europe, EU, Banking, Securities, Securitization, CRR, STS Securitization, COVID-19, Basel, IFD, Investment Firms, CRD, Regulatory Capital, EC

    Featured Experts
    Related Articles
    News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News
    News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News
    News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News
    News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News
    News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8521