The Basel Committee on Banking Supervision published a consultation document on Capital treatment for "simple, transparent and comparable" (STC) securitisations. The proposal builds on the revised capital standards issued in December 2014.
The Committee seeks to gather views on:
- the rationale for introducing criteria for identifying STC securitisations into the capital framework and whether there are any other aspects that the Basel Committee should consider before introducing STC criteria into the capital framework;
- whether, for the purpose of alternative capital treatment, additional criteria are required; and
- the compliance mechanism and the supervision of compliance presented in the consultative document.
The consultation closes on 5 February 2016.