ECB announced the decision to start ensuring that the banks it directly supervises comply with the requirements for risk retention, transparency, and resecuritization, under the EU Securitization Regulation. This decision follows the recent clarifications in the amendments to the Regulation, which are part of the EU Capital Market Recovery Package. The amendments explicitly state that risk retention, transparency, and ban on resecuritization requirements are prudential in nature and, therefore, should be supervised by the competent prudential supervision authorities.
Consequently, the supervision of risk retention, transparency, and ban on resecuritization requirements is an ECB competence. The decision further clarifies the implementation of the regulatory framework, which is an important precondition for a well-functioning securitization market. Over the coming months, ECB will exactly define how it intends to perform these supervisory tasks. It will then communicate further details on its supervisory approach and model, including obligations for banks to notify their supervisor of securitization-related activities.
Related Link: Press Release
Keywords: Europe, EU, Banking, Securitization, Securitization Regulation, Resecuritization, Capital Market Recovery Package, ECB
Previous ArticleBoE Recognizes PrivatBank Bail-In by National Bank of Ukraine
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
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.
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.
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.
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.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
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.
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.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
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.