in force 2025-01-01 INSERTED+1,621 −0§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unknown (an inserted provision states its own application date only in prose)
This is a newly inserted article requiring EBA, working closely with ESMA, to report to the Commission by 31 December 2026 on the prudential treatment of securitisation transactions, distinguishing among transaction types and between originators, investors, and STS and non-STS transactions.
It further directs EBA to monitor use of the transitional arrangement in Article 465(13) and assess effects of the output floor on securitisation exposures, including possible recalibration of non-neutrality factors under the SEC-SA and SEC-IRBA frameworks.
It also states that the Commission, based on that report and relevant BCBS standards, may submit a legislative proposal to the European Parliament and Council by 31 December 2027.
Cited: Art. 506d, v2
text before / after
inserted text (02013R0575-20250101)
Article 506d Prudential treatment of securitisation 1. By 31 December 2026, EBA, in close collaboration with ESMA, shall report to the Commission on the prudential treatment of securitisation transactions, differentiating between different types of securitisations, including synthetic securitisations, between originators and investors, and between STS and non-STS transactions. 2. In particular, EBA shall monitor the use of the transitional arrangement referred to in Article 465(13) and assess the extent to which the application of the output floor to securitisation exposures would affect the capital reduction obtained by originator institutions in transactions for which a significant risk transfer has been recognised, would excessively reduce the risk sensitivity and would affect the economic viability of new securitisation transactions. In such cases of a reduction of risk sensitivities, EBA may consider proposing a downward recalibration of the non-neutrality factors for transactions for which a significant risk transfer has been recognised. EBA shall also assess the appropriateness of the non-neutrality factors under both the SEC-SA and the SEC-IRBA, taking into account the historic credit performance of securitisation transactions in the Union and the reduced model and agency risks of the securitisation framework. 3. On the basis of the report referred to in paragraph 1 and taking into account related internationally agreed standards developed by the BCBS the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2027.