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BCBS-IOSCO criteria for identifying short-term STC securitisations

25/09/2018

On 14 May 2018, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) issued “Criteria for identifying simple, transparent and comparable short-term securitisations » (the short-term STC criteria).

On 14 May 2018, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) issued “Criteria for identifying simple, transparent and comparable short-term securitisations » (the short-term STC criteria). The criteria maintain and build on the principles in the Criteria for identifying simple, transparent and comparable securitisations issued by BCBS – IOSCO in July 2015. Given that the structures of short-term securitisations, notably those using an asset-backed commercial paper (“ABCP”) conduit to issue commercial paper, differ from those of term securitisations, the July 2015 STC Criteria have been amended so as to make them applicable to short-term securitisations.

On the same day, the Basel Committee issued a Standard on the capital treatment of STC short-term securitisations. This Standard sets out additional guidance and requirements regarding applying preferential regulatory capital treatment for banks acting as investors in, or as sponsors of, STC short-term securitisations.

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