On Nov. 22, CZC CB announced compliance with EBA guidelines.
CZC CB issued announcement re compliance with EBA guidelines on simplicity, transparency and standardization criteria for on-balance sheet securitizations.
Follows EBA Oct. 2024 published translations of Guidelines on STS criteria #170407.
Overview
On 27 May 2024, EBA issued guidelines on simplicity, transparency and standardization criteria for balance sheet securitizations amending EBA/GL/2018/08, EBA/GL/2018/09.
EBA/GL/2024/05 intended for competent authorities according to art 4 para 2 point i) EBA Reg and financial institutions according to art 4 para 1 of the same regulation.
In 2018, EBA issued guidelines on consistent, harmonized application of requirements to STS securitizations that are ABCP and to STS securitizations that are not ABCP.
Both cases were traditional securitizations, now EBA published similar guidelines for synthetic STS securitizations.
Requirements for synthetic STS securitizations in Level 1 text are essentially the same as in case of traditional STS securitizations.
Re consistency, relevant criteria in new interpreted in same way as in already existing guide, unless specifics of synthetic STS securitizations need different interpretation.
For a small group of requirements that should be the same for both traditional STS and synthetic STS securitizations, there was a need to amend these requirements.
Full text includes executive summary, background and rationale and other documents.
CZC CB, per art 16 para 3 EBA Reg, notified EBA it will apply them in its supervision.
Effectiveness
The guidelines apply from Dec. 9, 2024.
Regulators
CZC CB
Entity Types
B/D; Bank; MG Orig; Servicer
Reference
Com 11/22/2024; Gd, EBA/GL/2024/05; Gd, EBA/GL/2018/08; Gd, EBA/GL/2018/09
