Clifford Chance

EBA publishes opinion on regulatory treatment of NPE securitisations

29 October 2019

Over the past several years, there has been an increasing focus at the European level on measures that might be taken to help facilitate the removal of non-performing exposures ("NPEs") from bank balance sheets.

On 23 October, the European Banking Authority ("EBA") made a substantial contribution by publishing an opinion (the "EBA Opinion") suggesting adjustments to the regulatory regime for NPE securitisations. These include recommendations for adjusted regulatory capital treatment, risk retention and diligence obligations. These adjustments are designed to apply only to NPE securitisations and make them more fit for the particular circumstances that apply when securitising NPEs.

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