The Basel Committee on Banking Supervision (BCBS) has issued a consultative document, Capital treatment for simple, transparent and comparable short-term securitisations.
The consultative document supplements an earlier consultative document that the BCBS co-published with the International Organization of Securities Commissions (Criteria for identifying simple, transparent and comparable short-term securitisations).
The consultative document contains additional guidance and requirements for the purpose of applying preferential regulatory capital treatment for banks acting as investors in or as sponsors of simple, transparent and comparable short-term securitisations, typically in asset-backed commercial paper structures.
The proposed treatment set out in the consultative document is also consistent with the BCBS’ July 2016 revisions to the securitisation framework.
The deadline for comments on the consultation is 5 October 2017.