October 25, 2017

EC published opening remarks of Vice President Valdis Dombrovskis at the European Parliament’s (EP) Plenary debate on simple, transparent, and standardized (STS) securitization. He highlighted that the securitization was one of the first proposals put forward as part of the Capital Markets Union in 2015. He then moved on to discuss the benefits of STS securitization toward revitalizing the European markets, along with the specific criteria to facilitate this.

“After two years of discussions, I am happy to say that the final result is both balanced and ambitious,” said Mr. Dombrovskis. He also briefly explained the criteria of simple, transparent (ESMA-supervised data repository to ensure the transparency of STS securitizations), and standardized. As per the EC Vice President, the proposals contain appropriate safeguards. The issuers would need to retain at least 5% of the securitized asset, to ensure that their incentives are aligned with those of the investors. Also, underlying assets would need to be credit-worthy according to the existing EU rules.  New capital requirement rules are also being introduced for the banks that invest in securitization, to promote a stable and resilient banking sector. These requirements build on global standards and will fully reflect the lower risks associated with STS securitisation.

He concludes, “We have done important work to agree on the final text…. Let us now conclude this important chapter in the building of the Capital Markets Union, so the benefits to businesses and households can be quickly realized.”

 

Related Link: Opening Remarks of EC Vice President

Keywords: Europe, EU, Banking, Securities, STS Securitization, Capital Markets Union, EC

Related Articles
News

EC Amends Regulation Supplementing Solvency II Directive

EC published the Delegated Regulation (EU) 2019/981 that amends the Regulation (EU) 2015/35, which supplements Solvency II Directive (2009/138/EC) on the taking-up and pursuit of the business of insurance and reinsurance.

June 18, 2019 WebPage Regulatory News
News

IOSCO Report Examines Application of International Cyber Standards

IOSCO published a final report that examines the application of the three internationally recognized cyber standards and frameworks by IOSCO member jurisdictions.

June 18, 2019 WebPage Regulatory News
News

PRA Launches 2019 Stress Test Exercise for Life and General Insurers

PRA has launched the biennial insurance stress test and is asking the largest regulated life and general insurers to provide information about the impact of a range of stress tests on their business.

June 18, 2019 WebPage Regulatory News
News

PRA Finalizes Reporting Amendments to Pillar 2 Liquidity Framework

PRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.

June 17, 2019 WebPage Regulatory News
News

FSB Assesses Implementation of Compensation Standards and Principles

FSB published the sixth progress report on the implementation of its principles and standards for sound compensation practices in financial institutions.

June 17, 2019 WebPage Regulatory News
News

IMF Publishes Reports on 2019 Article IV Consultation with Ireland

IMF published its staff report and selected issues report under the 2019 Article IV consultation with Ireland.

June 17, 2019 WebPage Regulatory News
News

EBA Updates Data on Deposit Guarantee Schemes in EU

EBA published the 2018 data on two key concepts in the Deposit Guarantee Schemes Directive (DGSD)—namely, available financial means and covered deposits.

June 17, 2019 WebPage Regulatory News
News

SNB Updates Form for Reporting Solvency Risk of Counterparties

SNB published the survey (Form Release 5.01) and related documentation for reporting solvency risk of counterparties in the interbank sector (ARIS).

June 17, 2019 WebPage Regulatory News
News

ISDA Studies Variation in Global Implementation of Margin Requirements

ISDA published a paper that highlights the main areas of difference in the implementation of margin requirements for non-cleared derivatives across jurisdictions and makes recommendations on how to resolve these variations.

June 17, 2019 WebPage Regulatory News
News

US Agencies Finalize Rule to Streamline Reporting for Small Banks

US Agencies (FDIC, FED, and OCC) adopted a final rule to streamline the regulatory reporting requirements for small institutions.

June 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3265