Basel disappoints with failure to back EBA’s NPL plan

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By Owen Sanderson
24 Jun 2020

The Basel Committee has proposed tweaks to its securitization rules to ease non-performing loan sales — but it hasn’t gone as far as market participants would like, and has rowed back from proposals tabled by the European Banking Authority last October, which would have cut capital requirements much further.

The committee described the changes as a “technical amendment”, but it was a hotly anticipated tweak which could be crucial for banks active in the business of financing NPL sales, if widely adopted.

The Basel Committee cannot directly change capital requirements without local agreement, but its endorsement of the ...

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