French delay on securitisation issue fuels bank concerns

Following considerable pressure from banks, Commission Bancaire last month agreed to issue a formal bulletin clarifying its April ruling on the regulatory capital requirements for subordinated tranche investors in French securitisations. The new French ruling appeared to state that all French regulated investors in the subordinated piece of a securitisation will need to deduct full capital against their holding. Previously, investors needed to hold only 8% – the current risk weighting measur