Featured Product

    EC Welcomes Agreement on Changes to Securitization Rules in EU

    December 10, 2020

    EC welcomed the agreement between the European Parliament and European Council on targeted changes to the securitization framework and the Capital Requirements Regulation (CRR) in EU. These changes will apply immediately after their publication in the Official Journal of the European Union. The European Parliament and Council also agreed to solve an issue arising from a six-month time gap between the transposition deadlines of the Investment Firms Directive (IFD) and the investment firm rules contained in the Capital Requirements Directive (CRD5). Both these developments are part of the EU initiatives for making capital markets work for European recovery in response to the ongoing COVID-19 crisis.

    The amendments to securitization requirements create a specific framework for simple, transparent, and standardized on-balance sheet securitization that would benefit from prudential treatment reflecting the real risk of these instruments. In addition, these changes remove regulatory obstacles to securitizing non-performing exposures. These targeted changes were part of the capital markets stimulus package presented by EC in July 2020 and they encourage a wider use of securitization in the European recovery to free up bank capital and allow banks to continue lending, especially households and small and medium-size enterprises (SME). These amendments would be useful to allow banks to transfer certain risks to the markets so that they can continue to lend. The changes can also help banks deal with a possible increase in the non-performing exposures due to COVID crisis. 

     

    Related Links 

    Keywords: Europe, EU, Banking, Securities, Securitization, CRR, STS Securitization, COVID-19, Basel, IFD, Investment Firms, CRD, Regulatory Capital, EC

    Featured Experts
    Related Articles
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697