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The European Banking Authority (EBA) launched today 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 EBA Guidelines will play a crucial role in the new EU securitisation framework, by providing a single point of consistent interpretation of the STS criteria to originators, sponsors, investors and competent authorities throughout the Union. The consultation runs until 20 July 2018.

The European Banking Authority (EBA) launched today a public consultation on its draft Regulatory Technical Standards (RTS) specifying the requirements for originators, sponsors and original lenders related to risk retention as laid down in the new EU securitisation framework (STS Regulation). The RTS aim to provide clarity on the requirements relating to risk retention, thus reducing the risk of moral hazard and aligning interests. The consultation runs until 15 March 2018.

The European Banking Authority (EBA) launched today a public consultation on draft Regulatory Technical Standards (RTS) specifying a set of criteria for the underlying exposures in securitisation to be deemed homogeneous, as part of the requirements under the new EU securitisation framework. The homogeneity requirement aims to facilitate the assessment of underlying risks by investors and to enable them to perform robust due diligence. Its application is, therefore, one of prerequisites for a more risk sensitive regulatory treatment of the securitisation. The RTS are applicable to both asset-backed commercial paper (ABCP) and non-ABCP securitisations. The consultation runs until 15 March 2018.

The European Banking Authority (EBA) launched today a public consultation on its discussion paper on significant risk transfer in securitisation. This work builds on the EBA’s monitoring activity of supervisory practices in the area of significant risk transfer, which the Authority started in 2014 with the publication of the EBA Guidelines on this topic. The discussion paper aims at seeking stakeholders’ views on how to further harmonise the regulation and supervision of the risk transfer through securitisation. The EBA’s proposals are based on the newly agreed European securitisation legislation. The consultation runs until 19 December 2017.

The European Banking Authority (EBA) published today an Opinion addressed to the Polish Financial Supervision Authority (FSA) following the Competent Authority’s notification of its intention to introduce a partial waiver of Article 129 (1)(c) of the Capital Requirements Regulation (CRR), which specifies the conditions for the eligibility of covered bonds in relation to risk weight preferential treatment. Given the significant potential concentration problem in Poland, the EBA is of the opinion that the application of a partial waiver is adequately justified.

Both the RTS and the ITS aim at re-establishing securitisation on a sustainable basis mainly by encouraging market participants to develop a more transparent and uniform securitisation market and by enabling more convergence of supervisory practices across Europe with regards to the securitisation retention rules and related requirements.