EBF response to ECB consultation on loan-by-loan information for asset-backed securities
12 March 2010
The EBF shares the ECB’s view that asset-backed securities transparency needs to be improved. However, the EBF believes that the ECB should clarify the consequences of non-fulfilment, partial fulfilment or defective fulfilment of the planned requirements for ABS eligibility.
The European Banking Federation (EBF)'s response to the European Central Bank (ECB)'s Consultation on the Provision of ABS Loan-Level Information in the Eurosystem Collateral Framework
Key points:
· The EBF shares the ECB’s view that Asset-Backed Securities (ABS) transparency needs to be improved.
· The EBF requests information on the interaction of the envisaged ECB reporting regime with the possible developments of the CRD provisions (i.e. art. 122) going forward.
· The ECB should clarify the consequences of non-fulfilment, partial fulfilment or defective fulfilment of the planned requirements for ABS eligibility.
· The EBF supports that information in the envisaged ECB reporting regime is reported in different but standardised loan-level reporting templates.
· Bonds that may have originated before data collection was as advanced or as automated as it is today, present data compiling challenges for originators.
· The data portal operator must be seen to be reliable and independent. It is essential that verified data be provided in a timely and accurate manner.
· The timeframe envisaged to implement the ABS data requirements is very tight (i.e. 12 months). The EBF supports a phased implementation, distinguishing between new and existing securitisations.
