07 July 2014

EBA publishes final guidelines on significant credit risk transfer for securitisation transactions

The EBA recognizes that securitisation in a well-defined prudential framework is beneficial to banks and is a key funding tool for the real economy. Furthermore, it is a useful tool to achieve credit risk transfer and risk-sharing in the financial system and to support the current deleveraging and de-risking process of EU banks without inducing an excessive contraction in the real economy.

The Guidelines aim at ensuring a more consist approach in the assessment of significant risk transfer (SRT) across the EU and at achieving a level playing field in this area. The Guidelines include:

• requirements for originator institutions when engaging in securitisation transactions for SRT;
• requirements for competent authorities to assess transactions that claim SRT;
• requirements for competent authorities when assessing whether commensurate credit risk has been transferred to independent third parties; and finally
• a standard template on how competent authorities should provide information to EBA for approved transactions claiming SRT.

The EBA will provide advice to the European Commission by 31 December 2017 on whether a binding technical standard is required on SRT.

Press release

Guidelines

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