Brexit to crack open synthetic STS and NPL rules

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By Tom Brown
30 Oct 2020

The ECON committee of the European Parliament has pushed back a meeting to agree on proposed amendments to the securitization market, making it unlikely that the UK will be able to adopt the same measures before Brexit. The divergence could pin ABS as the first capital market to see significant divisions between the UK and the EU after the two entities separate.

November 9, 2020 is the new date of the meeting, when the ‘simple, transparent and standardised’ (STS) regulatory label will be amended and made applicable to synthetic securitizations, and the criteria around securitization of non-performing loans will be loosened to encourage bank lending into the real economy.

“This ...

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