The EBA has published today a Q&A report on the Guidelines on Article 122a of the CRD

29 September 2011

Following the publication of the guidelines on the application of Article 122a of the Capital Requirements Directive (CRD), on 31 December 2010, the European Banking Authority (EBA) received a substantial number of questions from competent authorities and market participants seeking further clarification on how the guidelines should be interpreted.

The Q&A document, published today, provides answers to technical and interpretive questions but is also aimed at encouraging market participants to create a more transparent and uniform securitisation market going forward and at achieving greater convergence of supervisory practices across Europe on the implementation and application of Article 122a.

Furthermore, the clarifications provided by this Q&A are of particular importance to credit institutions as non-compliance with certain paragraphs of Article 122a could lead to additional risk weights on securitisation holdings.

The EBA believes that the European securitisation market can play a significant role in meeting the funding needs of originators and sponsors and the asset diversification needs of investors in the EU. Additional clarification on the interpretation of the guidelines will, therefore, help the recovery of the European securitisation market.

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