EBA consults on the draft Guidelines on the STS criteria for on-balance-sheet securitisations

EBA launched a public consultation on its draft Guidelines on the STS criteria for on-balance-sheet securitisation under Article 26a(2) of Regulation (EU) 2017/2402 of the European Parliament and the Council.
The introduction of STS criteria for on-balance-sheet securitisations in the Securitisation Regulation means that they are now eligible for preferential risk-weight treatment under the CRR. The draft Guidelines provide a harmonised interpretation of the STS criteria, ensuring consistency with existing Guidelines for traditional securitisations (ABCP and non-ABCP).
The EBA has been mindful of consistency with existing guidelines for traditional securitisations throughout the development of these guidelines. This ensures a harmonised understanding of the STS criteria for all relevant stakeholders throughout the Union, and clarifies aspects with a potential level of ambiguity. The guidelines will also be applied on a cross-sectoral basis throughout the Union, facilitating the adoption of the respective criteria.
The consultation paper consists of two sections: the main section includes the draft Guidelines for on-balance-sheet securitisations, and the second section proposes targeted amendments to the Guidelines for non-ABCP and ABCP securitisations. The guidelines will play an important role in the updated EU securitisation framework, which has been applicable since January 2019 and was subject to a further update in 2021, supporting recovery from the COVID-19 crisis.
A public hearing will take place via conference call on 30 May 2023 from 14:30 to 15:30 (CEST). The deadline for registration is 23 May 2023 16:00 (CEST). Comments to this consultation can be sent to the EBA by clicking on the „send your comments“ button on the consultation page. The consultation runs until 7 July 2023. All received contributions will be published at the end of the consultation, unless requested otherwise.