The European Council adopted the regulation on capital requirements for positions in securitization and the regulation on securitization and on criteria for simple, transparent, and standardized (STS) products. The regulations shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union. It shall apply from January 01, 2019.
The new rules are part of the EU’s plan to develop a fully functioning Capital Markets Union by the end of 2019. The rules are intended to facilitate the development of a securitization market in Europe. Developing a securitization market will help create new investment possibilities and provide an additional source of finance, particularly for SMEs and startups. The two regulations were adopted at a meeting of the General Affairs Council, without discussion.
- Criteria for STS Products (PDF)
- Capital Requirements for Securitization Positions (PDF)
- Securitization Agreement Under Capital Markets Union, May 2017
Keywords: Europe, EU, Banking, Securities, Securitization, STS Securitization, Capital Markets Union, European Council, IFRS 9
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