Capital charges on "qualifying" securitisations should be slashed by 25% on average, the European Banking Authority said on Friday in the first concrete proposal globally to soften the tough stance imposed on the asset class after the financial crisis. The EU supervisor published the preview of its criteria on Simple, Transparent and Standard securitisation on Friday, ahead of formal advice to the European Commission in early July. Pivoting on the recalibration of capital requirements for assets that prove to be structurally sound, the proposal could spur a cross-sector revamp of ABS rules.
展开▼
