The Basel Committee on Banking Supervision has issued a second consultative paper on revisions to the Basel securitisation framework. The paper comprises a detailed set of proposals, including draft standards text, for a comprehensive revision of the treatment of securitisation within the risk-based capital framework. This initiative forms part of the Committee's broader agenda to reform regulatory standards for banks in response to lessons learned from the global financial crisis.
The main changes being consulted on in this second consultation relate to the: (i) Hierarchy of approaches; and (ii) Calibration of capital requirements.
Comments on the consultative document and the proposed standards text are invited by 21 March 2014.