Capital cut for synthetic securitisations splits regulators

European rulemakers wary of diverging from Basel standards

EBA
EBA paper stops short of recommending lighter capital charges for high-quality synthetic securitisations
Photo: EBA

European regulators are divided on easing capital charges for balance sheet synthetic securitisations that earn the label ‘simple, transparent and standardised’ (STS), market sources reveal.

Since 2019, true sale securitisations have been able to qualify for the STS label. In a draft report published on September 24, the European Banking Authority now proposes to extend the label to balance sheet synthetic securitisations. These are used by banks to transfer the credit risk of a portfolio of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: