BCBS consultation on NPL securitisations: EBF response

09 September 2020

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