The European Banking Authority (EBA) has published a consultation on its draft Guidelines, which will provide a harmonised interpretation of the criteria for a securitisation to be eligible as simple, transparent and standardised (STS).

The EBA has published separate sets of guidelines for non asset-backed commercial paper (ABCP) and ABCP securitisation. The EBA Guidelines are intended to provide a consistent interpretation of the STS criteria to originators, sponsors, investors and competent authorities. This will support a common understanding of all the STS criteria, including those related to the expertise of the originator and servicer, the underwriting of standards, exposures in default and credit impaired debtors, and predominant reliance on the sale of assets.

The consultation runs until 20 July 2018. If you have any questions about these consultations please contact Nick Smith.