July 28, 2017

ECB issued public guidance on information on transactions that go beyond the contractual obligations of a sponsor institution or an originator institution under Article 248(1) of the Capital Requirements Regulation or CRR (Regulation (EU) No 575/2013). The guidance states that a notification should be made to ECB in writing, no later than 15 working days following the execution of the transaction. An informal supervisory dialog on the specific features of a transaction may take place between an originator or sponsor institution’s representatives and the relevant joint supervisory team, once a transaction has been notified to ECB.

A significant supervised entity that is required to notify a transaction to ECB is encouraged to notify each transaction separately to ECB, in accordance with the Annex to the public guidance. CRR (particularly Article 248 thereof) establishes a general notification requirement to the competent authority for a credit institution acting as a sponsor or as an originator which, in respect of a securitization, has made use of Article 245(1) and (2) of that Regulation in the calculation of risk-weighted exposure amounts or has sold instruments from its trading book to the effect that it is no longer required to hold own funds for the risks of those instruments. The scope of the notification requirement is further specified in EBA guidelines on implicit support for securitization transactions (EBA/GL/2016/08). ECB intends to comply with the EBA guidelines that detail the transactions that go beyond the contractual obligations of a sponsor institution or an originator institution and, therefore, are required to be notified to the competent authority.

 

Related Links

Public Guidance (PDF)

CRR (PDF)

EBA Guideline: EBA/GL/2016/08 (PDF)

Keywords: Europe, Banking, CRR, Guidance, Securitization, EBA, ECB

Related Articles
News

BIS Report Discusses Regulatory Issues Related to Big Techs in Finance

BIS has pre-released a chapter of the BIS Annual Economic Report; this chapter focuses on the risks and opportunities presented by large technology firms (big techs) in the financial services sector.

June 23, 2019 WebPage Regulatory News
News

IOSCO Report Examines Liquidity in Corporate Bond Markets

IOSCO published a report that examines the factors affecting liquidity, under stressed conditions, in the secondary corporate bond markets.

June 21, 2019 WebPage Regulatory News
News

FED Publishes Results of the 2019 Stress Tests for Banks

FED published a report presenting results of the Dodd-Frank Act Stress Test (DFAST) exercise for 2019.

June 21, 2019 WebPage Regulatory News
News

BCBS Report Examines Global Pillar 2 Supervisory Review Practices

BCBS published a report that examines the Pillar 2 supervisory review practices and approaches in Basel member jurisdictions.

June 21, 2019 WebPage Regulatory News
News

IASB Publishes Work Plan and Meeting Updates for June 2019

IASB published an updated work plan and a summary of its June meeting, which presents preliminary decisions of the Board.

June 21, 2019 WebPage Regulatory News
News

HKMA Publishes Banking Exposure Limits Code Under Banking Ordinance

HKMA issued a circular to all authorized institutions informing that the Banking (Exposure Limits) Code has been published in the Gazette on June 21, 2019.

June 21, 2019 WebPage Regulatory News
News

OSFI Proposes Guideline on Internal Model Oversight for Insurers

OSFI proposed the draft guideline E-25 on the internal model oversight framework for federally regulated property and casualty (P&C) insurance companies.

June 21, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for June 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published one answer regarding the calculation of institution-specific countercyclical capital buffer rates.

June 21, 2019 WebPage Regulatory News
News

BCBS Publishes Summary of the Meeting in June 2019

BCBS published a summary of its June meeting in Basel.

June 20, 2019 WebPage Regulatory News
News

OCC Bulletin on Risk Management Guidance for Home Mortgage Lending

OCC published Bulletin 2019-28 on risk management guidance for higher-loan-to-value (LTV) lending activities in communities targeted for revitalization.

June 19, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3298