The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) has published the Criteria for identifying simple, transparent and comparable short-term securitisations (the ‘short-term STC criteria’). The short-term STC criteria have been developed to assist the financial industry in its development of simple, transparent and comparable short-term securitisations. The criteria have been designed to take account of the characteristics of asset-backed commercial paper (‘ABCP’) conduits, such as (i) the short maturity of the commercial paper issued, (ii) the different forms of programme structures, and (iii) the existence of multiple forms of liquidity and credit support facilities. The criteria also clarify that equipment leases and auto loan and lease securitisations are not automatically excluded from the short-term STC framework. The short-term STC criteria are non-exhaustive and non-binding. The BCBS has concurrently issued the Capital treatment for simple, transparent and comparable short-term securitisations outlining how the short-term STC criteria could be incorporated into the regulatory capital framework for banks.

If you have any questions about these criteria please contact Nick Smith.