We are especially in agreement with the idea of keeping a single definition of "homogeneity" for all types of STS transactions, whether true sale or synthetic.
PCS filed its response to the EBA's consultation on the draft "homogeneity" RTS.
Broadly, PCS is very supportive of the EBA's overall approach. We are
especially in agreement with the idea of keeping a single definition of
"homogeneity" for all types of STS transactions, whether true sale or
synthetic. We also agree with the need to clarify the definition of
"large corporate". We do, however, depart from the EBA in the best way
to do this and have concerns with the proposed solution being the only
solution on offer. Our response also draws attention to the vital
importance of the proposed transition period. The EBA proposal is
welcome and, even, essential if we wish to avoid a prudential regulation
exacerbating rather than calming systemic risks. But for it to work, a
transition period of appropriate length is required.
PCS
© PCS
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