The European Central Bank (ECB) published a non-binding guide, along with an associated template, to set out the notification practices that significant institutions acting as originators or sponsors of a securitization transaction are advised to follow.
ECB recommends that significant institutions follow this guide with respect to all securitization transactions originated after April 01, 2022, though ECB may request information, on a case-by-case basis, for securitization transactions that originated before this date. The guide specifies information that significant institutions are expected to submit to ECB, both at origination and during the life of securitization transactions, if a significant event (as defined in Article 7 (1) g) of the Securitization Regulation) occurs relating to the transactions, affecting compliance with Articles 6 to 8. ECB foresees a phase-in implementation until October 01, 2022 for the significant institutions unable to properly notify ECB from April 01, 2022. During the phase-in period, significant institutions are expected to finalize set-ups and systems to be able to submit notifications in line with the expectations of the guide. It is recommended that new transactions be notified to ECB no later than one month from the date of origination. ECB consulted on the draft guide on the notification of securitization transactions from November 2021 to January 2022. ECB also published the comments received on the draft guide.
The Securitization Regulation establishes a comprehensive legislative framework applicable to all securitizations, including requirements with regard to risk retention (Article 6), transparency (Article 7), and a ban on resecuritization (Article 8). The requirements of Articles 6 to 8 cover all securitizations within the scope of the Securitization Regulation, including public and private transactions; traditional, synthetic, and asset-backed commercial paper, or ABCP, transactions; and securitizations that are structured to achieve significant risk transfer and those that are not. The guide recommends that significant institutions acting as originators or sponsors for either private or public securitizations notify ECB of compliance of these transactions with Articles 6 to 8 of the Securitization Regulation. Notifications are expected to be submitted via a dedicated template, published alongside the guide. The guide will be updated from time to time to reflect developments in the regulation and supervision of securitizations.
Keywords: Europe, EU, Banking, Securitization Regulation, Securitization Framework, Securitization Transactions, Guidelines, ECB
Previous ArticleBCBS Consults on Prudential Treatment of Cryptoasset Exposures
Next ArticleCMF Designates Six Banks as Systemically Important
The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.
The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).