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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.

The European Banking Authority (EBA) published today a Report including recommendations on how to harmonise covered bond framework in the EU. This Report represents an unparalleled attempt to further strengthen the covered bonds across the EU and seeks to ensure that only those financial instruments that comply with the harmonised structural, credit risk and prudential standards can be branded as ‘covered bonds’ and have access to special regulatory and capital treatment as provided in the current EU financial regulation.

The European Banking Authority (EBA) published today its final Guidelines on implicit support for securitisation transactions. The objective of these Guidelines is to clarify what constitutes arm’s length conditions and to specify when a transaction is not structured to provide support for securitisations. The Guidelines will contribute towards the successful implementation of the Commission’s securitisation package under the Capital Markets Union reform, giving clarity on the matter to credit institutions.

The European Banking Authority (EBA) published today a Report analysing measures taken by Competent Authorities in 2014 to ensure compliance by institutions with securitisation risk retention, due diligence and disclosure requirements. Based on the EBA findings, the EBA has identified best practices, which will help Competent Authorities in their supervisory assessments of compliance of these requirements.

The European Banking Authority (EBA) launched today a public consultation on draft Guidelines on implicit support for securitisation transactions. The objective of the Guidelines is to provide clarity on what constitutes arm’s length conditions and when a transaction is not structured to provide support for securitisations. The consultation runs until 20 April 2016.

The European Banking Authority (EBA) published today a report summarising the findings of its analysis and market practice assessment of the synthetic securitisation market. The EBA supports the limited extension of the prudential treatment granted to simple, standardised and transparent securitisations (STS) to banks that originate and retain certain SME balance sheet synthetic securitisation positions, as in the Commission’s legislative proposal on securitisation. The EBA advises on the criteria that should determine eligibility of balance sheet synthetic transactions, specifying, among others, under which conditions originator banks may transfer the risk of eligible transactions to public or private investors.