Newsalert | Finance 02/07/2024

On the 27th of June 2024, the European Banking Authority (EBA) published an Opinion addressed to CONSOB, regarding the decision to grant the permission referred to in Article 26e(10) of Regulation (EU) 2017/2402, which specifies the eligibility criteria for high quality collateral for on-balance-sheet securitisations to qualify as Simple, Transparent, and Standardised  (STS).

Chiomenti's Professionals examined the Opinion, highlighting how the EBA assessed the evidence provided by CONSOB and, considering the limitations related to Italy's credit quality step, deemed the use of a partial waiver to allow collateral in the form of cash on deposit with the originator, or one of its affiliates, with a CQS 3 credit quality.