BoE published a market notice setting out the detailed transparency requirements for asset-backed securities and covered bonds. To be eligible for the BoE operations, the notice sets out transparency requirements that must be fulfilled for asset-backed securities and covered bonds.
The ABS-CERT template of BoE must be completed by the participant in Sterling Monetary Framework (SMF participant) requesting eligibility. Loan-level information is required to be made publicly available at a frequency of not less than quarterly and within one month after the relevant interest payment date. BoE requires loan-level data to be provided in the templates. The prospectus and the closing transaction documents (excluding legal opinions) are also required to be made freely and publicly available, along with the standardized monthly investor reports (at least quarterly). Furthermore, for securitizations, a cash flow model is required to be made freely and publicly available by, or on behalf of, the originator or issuer.
All of the above information is expected to be placed on a website maintained by the issuer or originator (or by another party on their behalf) and made freely and readily available to interested third parties. In certain circumstances, BoE may request additional information to support its analysis, including historic performance information. Asset-backed securities and covered bonds backed by collateral from non-UK jurisdictions will be required to comply with the BoE eligibility criteria. BoE will adopt a principles-based approach to non-UK transactions, with exemptions granted only where criteria are not relevant. Any such requests for exemptions should be discussed with the BoE on an individual basis.
Keywords: Europe, UK, Banking, Securities, Asset-Backed Securities, Reporting, Securitization, Transparency, Covered Bonds, BoE
Previous ArticleSAMA Publishes Requirements for Senior Position Appointments
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.