EBF comments on the BCBS Consultative Document
on capital treatment for “simple, transparent and
comparable” securitisations

Publication date: 5 February 2016

Principal-based approach

The European Banking Federation (EBF) welcomes the initiative of the Basel Committee on Banking Supervision (BCBS) to adjust the capital treatment for “simple, transparent and comparable” (STC) securitisation. As stated in our comments on the consultation paper to criteria for identifying STC securitisation, developed jointly by the BCBS and the International Organization of Securities Commissions (IOSCO), a functioning securitisation market is essential to support economic development, and for providing sufficient credit to companies. To ensure a functioning securitisation market it is of great importance that a securitisation with lower structural risk gets a lower capital surcharge.