Clifford Chance

The EBA publishes its report on the creation of an STS Framework for synthetic securitisations

11 May 2020

The European Banking Authority has published its report on the feasibility of extending the STS Securitisation Framework to synthetic securitisations. In the report, the EBA has proposed a set of criteria for synthetic STS securitisation- limited to balance sheet synthetic securitisations – and indicated how originators could benefit from a more favourable regulatory capital treatment for such transactions. It has, however, left it up to the European Commission to decide whether to proceed with such differentiated treatment.

This briefing discusses the key issues arising from the report.

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