A new consultation paper published earlier this week by the Basel Committee on Banking Supervision will inevitably cause uncertainty and is likely to affect investment decisions long before the new rules take effect.
The paper sets out the Committee’s proposal to revise the treatment of securitisation exposures and is largely inspired by the belief that highly-rated securitisations currently attract too little regulatory capital and low-rated senior securitisations are subject to regulatory capital charges which are too high. The proposals are relatively high level. The Committee has invited the submission of comments by 15 March 2013. Responses to the public consultation, together with the results of a quantitative impact study, will be considered as the Committee moves forward to suggest detailed amendments to the securitisation framework.
Continue Reading Basel Committee proposes changes to the Basel II securitisation framework – what does this mean for new issuance?
