EBA calls for improving the well-functioning of the securitisation market
The European Banking Authority (EBA) published today an Opinion on how to improve the well- functioning of the securitisation market. The Opinion is based on a detailed report, which assesses compliance by Competent Authorities with securitisation risk retention, due diligence and disclosure requirements. While expressing support for the provisions laid down in the Capital Requirements Regulation (CRR), the EBA is making a series of recommendations to ensure increased transparency, legal certainty of compliance with the retention rules as well as prevention of any potential regulatory arbitrage. The report also assesses the application and effectiveness of such requirements in light of the international developments.