EBA calls for big rethink on ABS regs with ‘high quality’ vision

By Tom Porter
16 Oct 2014

The European Banking Authority has called for a systematic review of the “entire regulatory framework applicable to securitizations” to better align its treatment with other asset classes, alongside proposing the first concrete definition of a ‘qualifying’ securitization.

The move comes just days after the European Commission clarified its own eligibility criteria for ‘high quality’ ABS and harmonised the requirements for preferential regulatory treatment under Solvency II and the Liquidity Coverage Ratio, which bankers said was too little, too late to stop investors favouring other products.

“Some ...

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