Featured Product

    EBA Amends Standards on Mapping of ECAIs for Securitization Positions

    May 03, 2022

    The European Banking Authority (EBA) published a report that sets out the implementing technical standards to amend Regulation 2016/1801 on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for securitization positions. EBA also updated the guidelines for assessing equivalence of professional secrecy and confidentiality regimes of third-country authorities.

    The report with the revised final draft implementing technical standards on mapping of ECAIs addresses the relevant amendments introduced by the new securitization framework as well as the mappings for three ECAIs that extended their credit assessments to cover securitizations. The Implementing Regulation 2016/1801 is part of the European Union Single Rulebook for banking aimed at creating a safe and sound regulatory framework consistently applicable across the European Union. The Capital Requirements Regulation (CRR) amendments that were brought by the new securitization framework have made it necessary to update the mapping tables accordingly. Following the amendments to Chapter 5 of the CRR, a hierarchy of approaches was set out to calculate capital requirements for positions in a securitization, whereby institutions using the Securitization External Ratings Based Approach (SEC-ERBA) shall calculate risk-weighted exposure amounts based on credit quality steps (CQSs) set out in the CRR. The amended Regulation reflects 18 CQSs for long-term external credit assessments, which ensures enhanced granularity and risk-sensitivity with respect to the approaches previously considered in the Regulation. In addition, EBA published the individual draft mapping reports to illustrate how the methodology was applied to produce the mappings. The final implementing technical standards will be submitted to the European Commission for endorsement before being published and will come into effect after 20 days of their publication in the Official Journal of the European Union.

    The updated guidelines on equivalence assessment of third-country authorities are aimed to widen the scope and purpose of the assessment. The updated guidelines allow for a wider scope of the assessment to include all relevant provisions in the Capital Requirements Directive (CRD), the revised Payment Services Directive (PSD2), the Bank Recovery and Resolution Directive (BRRD), and the Anti-Money Laundering Directive (AMLD), as applicable to the specific third-country authorities. they also widen the purpose of assessment to support cooperation arrangements and facilitate participation in supervisory, resolution, and AML colleges. EBA performs this assessment to facilitate cooperation with third-country authorities as well as to facilitate the functioning of European Union supervisory and resolution colleges. EBA also updated the document showing how the principles that govern the European Union confidentiality regime are reflected in the European Union framework, as defined by the relevant provisions in the CRD, BRRD, AMLD, and PSD2. The competent authorities must comply with the guidelines two months after the publication of the guideline translations. 

     

    Related Links

     

    Effective Date: OJ+20 days

     

    Keywords: Europe, EU, Banking, Implementing Technical Standards, ECAIs, CRR, Credit Quality Steps, Securitization, Basel, Regulatory Capital, CRD, Equivalence Regime, Credit Risk, Third Country Regime, EBA

    Featured Experts
    Related Articles
    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
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514