EBA consults on its guidelines interpreting the STS criteria in securitisation

20 April 2018

The European Banking Authority launched a public consultation on its draft Guidelines, which will provide a harmonised interpretation of the criteria for the securitisation to be eligible as simple, transparent and standardised (STS).

The Guidelines, developed for both non asset-backed commercial paper (ABCP) and ABCP securitisation, clarify and ensure common understanding of all the STS criteria, including those related to the expertise of the originator and servicer, the underwriting of standards, exposures in default and credit impaired debtors, and predominant reliance on the sale of assets.

The Guidelines will be applied on a cross-sectoral basis throughout the Union with the aim of facilitating the adoption of the STS criteria, which is one of prerequisites for the application of a more risk-sensitive regulatory treatment under the new EU securitisation framework.

Responses to this consultation can be sent to the EBA by 20 July 2018. A public hearing will take place at the EBA premises on 11 June 2018 from 14:00 to 16:00 UK time.

Press release

Consultation paper – non-ABCP securitisation

Consultation paper – ABCP securitisation

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