The European Banking Authority (EBA) has published final guidelines on significant credit risk transfer for securitisation transactions relating to Articles 243 and 244 of the Capital Requirements Regulation (CRR).
The guidelines aim to ensure a more consistent approach in the assessment of significant risk transfer (SRT) across the EU and will be part of the EU single rulebook. The guidelines include:
- requirements for originator institutions when engaging in securitisation transactions for SRT;
- requirements for EU national competent authorities to assess transactions that claim SRT;
- requirements for EU national competent authorities when assessing whether commensurate credit risk has been transferred to independent third parties; and
- a standard template on how EU national competent authorities should provide information to the EBA for approved transactions claiming SRT.
An accompanying press release states that the guidelines are applicable for all transactions originated from the day the guidelines are adopted. It also states that the EBA will provide advice to the European Commission by 31 December 2017 on whether a binding technical standard is required on SRT.