The EBF has responded to the consultation of the Basel Committee on Banking Supervision on a technical amendment regarding the capital treatment of securitisations of non-performing loans (NPL).
The
EBF appreciates the work that is being done by regulatory
institutions on the topic of NPL securitisations and would like to
highlight the following key messages:
- The Basel Committee should build on the technical work already being done in BCBS member jurisdictions
- The Basel proposal will lead to reduced sales prices of NPL for institutions, hindering NPL reduction
- The Basel proposal is not risk sensitive
- Challenges for the regulatory framework remain, which will need to
be addressed by a broader review of the securitisation framework
© EBF
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