BCBS consultation on NPL securitisations: EBF response

CONSULTATION RESPONSE
x

BCBS consultation on NPL securitisations: EBF responsex

BRUSSELS, 9 September 2020 - The EBF has responded to the consultation of the Basel Committee on Banking Supervision on a technical amendment regarding the capital treatment of securitisations of non-performing loans (NPL).

The EBF appreciates the work that is being done by regulatory institutions on the topic of NPL securitisations and would like to highlight the following key messages:

• The Basel Committee should build on the technical work already being done in BCBS member jurisdictions


• The Basel proposal will lead to reduced sales prices of NPL for institutions, hindering NPL reduction


• The Basel proposal is not risk sensitive


• Challenges for the regulatory framework remain, which will need to be addressed by a broader review of the securitisation framework

EBF Adviser:

Lukas Bornemann, Policy Adviser

l.bornemann@ebf.eu, +32 2 313 32 73

About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from 45 countries. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere. Website: www.ebf.eu Twitter: @EBFeu

BCBS consultation on NPL securitisations: EBF response