On 27 May 2024, the European Banking Authority (EBA) published its final guidelines on the simple, transparent and standardised (STS) criteria for on-balance sheet securitisations under Article 26a(2) of the Securitisation Regulation.

The main objective of the guidelines is to provide a single point of consistent interpretation of the STS criteria and ensure a common understanding of them by originators, original lenders, securitisation special purpose entities, investors, competent authorities and third-party verification agents verifying STS compliance in accordance with Article 28 of the Securitisation Regulation, throughout the EU.

While introducing these guidelines, the EBA also deemed it necessary to amend its guidelines on STS criteria for asset-backed commercial paper (ABCP) and non-ABCP. It is therefore making a limited set of targeted amendments to the existing EBA guidelines on non-ABCP and ABCP securitisation respectively, for a specific number of these requirements, to ensure that the interpretation provided by the EBA is consistent across all three sets of guidelines.

The EBA consulted on the guidelines in April 2023 – for more information, see our previous blog.