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
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR

    The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy

    The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8201