EBA Publishes Final Standards on Risk Retention Requirements for Securitizations
On April 12, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on the risk retention requirements for securitization transactions. While EBA had previously published standards in 2018, the latest RTS provides more clarity for originators, sponsors, and lenders, particularly in areas that had not previously been addressed, such as in securitizations of non-performing loans (NPLs) as well as re-securitizations. The RTS also specifies criteria servicers need to meet to demonstrate expertise in the servicing of NPLs. Read more.