Risk Control Limited, with the support of renowned co-authors, has published a paper that contributes to the current debate on the reform of the securitisation regulatory framework (see also our TSIkompakt article from31 July 2024).
Risk Control proposes reform of supervisory structures
Risk Control focusses, with regards to the usual proposals for the revision of the regulatory framework, in particular on the risk weight floors. Back in November 2022, Risk Control, in collaboration with AFME, already warned of the impact of the output floors introduced with CRR III (TSIkompakt from 15 November 2022).
Also, the authors also include additional important aspects, such as the comparison and differentiation between securitisations and covered bonds as well as the proposal to streamline structures and processes within and between the European supervisory bodies.
The full report is worth reading and can be found here.