From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

  1. Home
  2. Policy
  3. Consultation responses
  4. BIS consultation on the Capital treatment for “simple, transparent and comparable” securitisations.

BIS consultation on the Capital treatment for “simple, transparent and comparable” securitisations.

Last updated: 5 Feb 2016

Consulting body:
Basel Committee on Banking Standards
Status:
Closed
Period of consultation:
Runs from 1 November 2015 to 5 February 2016
CML action:
Response submitted
The BIS has published a consultation on the Capital treatment for “simple, transparent and comparable” securitisations and the CML has responded to this consultation.

While we broadly support these proposals which potentially could further re-invigorate the residential mortgage backed securitisation market (RMBS), we believe that further regulation should be principle-based to enable the broad range of lenders and structures currently employed to continue to use the market. 

Furthermore while we welcome the proposals to reduce the amount of capital required to hold securitisations on the balance sheet (assuming they qualify for STC designation), the BIS proposals are relatively conservative and could be extended to bring them into line with the proposals currently suggested with the Capital Requirements Regulation (CRR).