The European Central Bank (ECB) plans to introduce a simplified review process (“fast track”) for securitisations with significant risk transfer (SRT) from January 2026. The fast track process applies only to standardised securitisations. These transactions must meet specific criteria. Inter alia, the securitised pool must include only performing loans and may consist of leveraged loans up to a maximum of 20%. In addition, the securitisation may have only a limited impact on the bank’s capital ratios and must include standardised contractual early termination clauses. Under the fast track, the ECB limits the approval period to two weeks. This aims to create clearer timelines and more efficient processes.
ECB aims for a more risk-based review
The ECB intends to use the capacities gained to carry out more risk-based reviews. In doing so, it plans to examine more complex securitisations in greater detail in the future and to continue assessing, among other things, the internal governance and risk management processes of the originating banks. For the new fast track procedure, the ECB has also developed a new template with granular data requirements, which is intended to support supervisory monitoring of the market. Going forward, banks will be required to complete this template as part of the fast track procedure.
SRT market continues to grow
The ECB is thus adapting its approach to market dynamics. The SRT market grew by 241% between 2020 and 2024, measured by issued volume. This growth is mainly driven by the synthetic SRT market, which increased from EUR 63 bn issuances in 2020 to EUR 181 bn in 2024. SRT securitisations in the traditional securitisation segment amounted to at least EUR 29 bn in 2024.