Basel Committee proposes lighter capital for ‘STC’ securitisations
Simple, transparent and comparable securitisations may need lower levels of capital
The Basel Committee on Banking Supervision outlined adjustments to its capital framework to lighten the load for simple, transparent and comparable (STC) securitisations today (November 10).
The aim is to reduce the regulatory capital requirements for securitisations conforming to the STC definition, thereby avoiding many of the risks that became apparent during the 2008 crisis.
"Additional confidence" in STC securitisations "may justify a reduction in the conservatism built into the capital
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