One benefit of a securitisation being STS is to allow a bank investing in such a securitisation to allocate a lower amount of capital against that position than would otherwise be required by the EU Capital Requirement Regulation or , in the UK, it’s onshored version ("CRR").
However, according to the CRR, for the lower capital requirement to apply a securitisation must not only be STS but also meet an additional 4 criteria.
In addition to an STS verification, PCS will, if requested, provide a CRR assessment in which it will address these additional 4 criteria.
We strongly advise all visitors to this site to read our “Disclaimer” below for a better understanding of the nature of all PCS services.
Another benefit of a securitisation being STS is to allow a bank holding it to count it towards its liquidity coverage ratio (“LCR").
To benefit from favourable LCR treatment a securitisation must not only be STS but also meet an additional 8 criteria.
In addition to an STS verification, PCS will, if requested, provide an LCR assessment in which it will address these additional 8 criteria.
We strongly advise all visitors to this site to read our “Disclaimer” below for a better understanding of the nature of all PCS services.
In order to meet regulatory requirements, it is not possible for an originator or sponsor to engage PCS only for a CRR or an LCR assessment without engaging PCS for an STS verification of the same transaction. Therefore, to engage PCS for a CRR or an LCR Assessment, an applicant should tick the CRR Assessement or LCR Assessment box when filling in our online application form.
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