The short-term STC criteria maintain and build on the principles in the Criteria for identifying simple, transparent and comparable securitisations issued by BCBS-IOSCO in July 2015. The criteria published take account of the characteristics of asset-backed commercial paper (ABCP) conduits, such as:
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the short maturity of the commercial paper issued,
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the different forms of programme structures and
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the existence of multiple forms of liquidity and credit support facilities.
The criteria aim to assist the financial industry in its development of simple, transparent and comparable short-term securitisations. They were designed to help the parties to such transactions to evaluate the risks of a particular securitisation across similar products and to assist investors with their conduct of due diligence on securitisations. The BCBS has concurrently issued a consultative document Capital treatment for simple, transparent and comparable short-term securitisations outlining how the short-term STC criteria could be incorporated into the regulatory capital framework for banks.
BCBS and IOSCO welcome comments on all aspects of this consultative document by Thursday 5 October 2017.
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