Featured Product

    EC Regulation on Homogeneity of Underlying Exposures in Securitization

    November 06, 2019

    EC published the Delegated Regulation 2019/1851 regarding the regulatory technical standards on the homogeneity of the underlying exposures in securitization. Regulation 2019/1851 supplements the Securitization Regulation (2017/2402) and its provisions deal with homogeneity for asset-backed commercial paper (ABCP) as well as non-ABCP securitizations. The Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

    To achieve robust due diligence by investors and to facilitate the assessment of underlying risks in accordance with the aims of the Securitization Regulation, the underlying exposures of a securitization should share similar risk profiles. Thus, Regulation 2019/1851 lays down uniform criteria to determine the homogeneity of a given pool of underlying exposures. For the purposes of Articles 20(8) and 24(15) of the Securitization Regulation, underlying exposures shall be deemed to be homogeneous where all of the following conditions are met:

    • They correspond to one of the asset types mentioned in Point (a) of Article 1 of Regulation 2019/1851.
    • They are underwritten in accordance with standards that apply similar approaches for assessing associated credit risk.
    • They are serviced in accordance with similar procedures for monitoring, collecting, and administering cash receivables on the asset side of the securitization special purpose entity.
    • One or more of the homogeneity factors are applied in accordance with Article 2 of Regulation 2019/1851.


    Related Links

    Effective Date: November 26, 2019

    Keywords: Europe, EU, Banking, Securities, STS Regulation, Securitization, Securitization Regulation, Homogeneity, Credit Risk, Regulation 2019/1851, ABCP Securitization, Non ABCP Securitization, EC

    Related Articles

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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