European Central Bank and Bank of England liquidity schemes require that loan-level data be disclosed on a regular basis (no less than quarterly) with respect to asset-backed securities which are to be used as collateral. On 27 November the ECB announced that it would postpone the introduction of mandatory loan-level data reporting requirements to 3 January 2013 for RMBS, 3 January 2013 for ABS backed by SME loans and 1 March 2013 for CMBS. Both the Bank of England and the ECB provide templates for disclosure of loan-level data on their websites.
The ECB describes the rationale for its loan-level data initiative as being to help “both investors and third-party assessment providers with their due diligence” and states that “Ultimately, more transparency will help to restore confidence in the securitisation market”. It is clear that the intention is to set a standard not just for the central bank liquidity scheme but also for the ABS market in general.
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