Proposed Revisions to Basel Securitisation Framework
18 January 2013
Mayer Brown Legal Update
In December 2012 the Basel Committee on Banking Supervision (BCBS) published a consultation paper (BCBS 236) proposing substantial changes to the methods banks use to calculate risk-based capital requirements related to securitisation exposures. The proposal’s stated objectives are to make securitisation capital requirements more prudent and risk-sensitive, to lessen reliance on external credit ratings, and to reduce "cliff effects" (in which small differences in credit quality or other parameters produce large differences in capital requirements). Comments on the proposal are due 15 March 2013.