CRR: EBA publishes guidelines on implicit support for securitisations

The EBA has published final guidelines on implicit support for securitisation transactions under the Capital Requirements Regulation (CRR). The guidelines clarify what constitutes arm's length conditions and provide an objective test for assessing when a transaction is not structured to provide support for securitisations. Furthermore, guidance is provided on notification requirements applicable to such transactions and provisions are included to avoid a scenario whereby support is provided on behalf of the originator by another entity.

The guidelines are intended to contribute to the implementation of the EU Commission's securitisation package under the Capital Markets Union (CMU) reform programme.