EBA consults on its proposals to create a STS framework for synthetic securitisation

27 September 2019

On 25 September 2019,  the European Banking Authority (EBA) launched a 2-month public consultation on its proposals for a simple, transparent and standardised (STS) framework for synthetic securitisation.

This ground-breaking work on synthetic securitisation unveils new data and insights into post-crisis market developments and trends, including data on historical default and loss performance. It also proposes a list of criteria to be considered when labelling the synthetic securitisation as ‘STS’. While the Discussion Paper does not provide any recommendations on any potential differentiated regulatory treatment, it does seek stakeholders’ input about the possibility, its potential impact and other considerations. 

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