ECB announced the decision to start ensuring that the banks it directly supervises comply with the requirements for risk retention, transparency, and resecuritization, under the EU Securitization Regulation. This decision follows the recent clarifications in the amendments to the Regulation, which are part of the EU Capital Market Recovery Package. The amendments explicitly state that risk retention, transparency, and ban on resecuritization requirements are prudential in nature and, therefore, should be supervised by the competent prudential supervision authorities.
Consequently, the supervision of risk retention, transparency, and ban on resecuritization requirements is an ECB competence. The decision further clarifies the implementation of the regulatory framework, which is an important precondition for a well-functioning securitization market. Over the coming months, ECB will exactly define how it intends to perform these supervisory tasks. It will then communicate further details on its supervisory approach and model, including obligations for banks to notify their supervisor of securitization-related activities.
Related Link: Press Release
Keywords: Europe, EU, Banking, Securitization, Securitization Regulation, Resecuritization, Capital Market Recovery Package, ECB
Previous ArticleBoE Recognizes PrivatBank Bail-In by National Bank of Ukraine
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)