BIS consultation on the Capital treatment for “simple, transparent and comparable” securitisations.
Last updated: 5 Feb 2016
- Consulting body:
- Basel Committee on Banking Standards
- Period of consultation:
- Runs from 1 November 2015 to 5 February 2016
- CML action:
- Response submitted
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).