Following a lengthy consultation period which has involved two detailed rounds of consultation and amendment, the Basel Committee has now released the final set of Revisions to the Securitisation Framework, which will amend the Basel III capital and liquidity framework to incorporate a revised risk-weighting framework for securitisation transactions, for application from 1 January 2018.  The final Framework sets out a new, simplified, three-tier hierarchy of approaches to measuring securitisation exposures, imposes risk-weight floors and caps, and significantly increases the risk-weights as compared to the existing framework, closely following the proposals in the Second Consultative Document (see Edition 8 of this SCM Briefing which summarised the Basel Committee's Second Consultative Document), with some amendments and clarifications.  We provide an overview of the key aspects of the final Revisions to the Securitisation Framework in a Feature Piece in this Edition of the SCM Briefing. 

Useful links:

Basel Committee Revisions to the Securitisation Framework