ECB Aims to Quicken Synthetic Risk Transfer Transactions

According to Bloomberg, the European Central Bank (ECB) is looking to accelerate the approval process for synthetic risk transfer (SRT) transactions. The update would allow banks to submit information about a SRT transaction up to two weeks before the deal closes rather than the current three-month standard. The pilot program will begin in January 2025 and run for six months. This recommendation came from an ECB working group consisting of individuals from the private and public sectors. 

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