17 April 2018
On the 17 April 2018, EBA has furthermore launched a Consultation on its Guidelines interpreting the simple, transparent and standardised (STS) criteria in securitisation. The EBA Guidelines will play a crucial role in the new EU securitisation framework, by providing a single point of consistent interpretation of the STS criteria to originators, sponsors, investors and competent authorities throughout the Union. The guidelines, developed for both non asset-backed commercial paper (ABCP) and ABCP securitisation, clarify and ensure common understanding of all the STS criteria, including those related to the expertise of the originator and servicer, the underwriting of standards, exposures in default and credit impaired debtors, and predominant reliance on the sale of assets. The Guidelines will be applied on a cross-sectoral basis throughout the Union with the aim of facilitating the adoption of the STS criteria, which is one of prerequisites for the application of a more risk-sensitive regulatory treatment under the new EU securitisation framework.
The deadline for providing comments to the EBA’s STS Consultation is the 20 July 2018. A public hearing is scheduled to take place in advance of the deadline on 11 June 2018 at the EBA premises (more information is available here).
The European Covered Bond Council (ECBC) is the platform that brings together covered bond market participants including covered bond issuers, analysts, investment bankers, rating agencies and a wide range of interested stakeholders.
