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Final draft sale6/12/2023 Iii) unsecured exposures to natural persons that are outside of the scope of the Directive 2008/43/EC Ii) mandates to be sold outside the European jurisdiction I) non-granular transactions (sale of a single loan, single borrower, and syndicated loans) Taking into consideration the principle of proportionality, there are some cases where the EBA template shall reduce the number of compulsory fields: Overall, the template provides 129 data fields out of which 69 data fields are mandatory for NPL transactions. Historical collection of repayment, look through the cash flow generated on a specific loan in the previous 36 months before the cut-off date.Mortgage guarantee, give details about the mortgage itself such as mortgage amount, mortgage date, higher ranking loans, and lien position.Collateral, guarantee, and enforcement cover information about the provided protection on the loans (type of asset classes, location of the asset, type of guarantees, enforcement status of the protection, etc).Loan provides information related to the specific characteristics of the loan agreement (the outstanding balance, the default date, loan enforcement status, etc).Guarantor-guarantee, which shows any relationship between any other protections received (i.e personal and corporate guarantees) and its protection provider.Loan-protection, a loan other than mortgage loans may have several collaterals and collateral may be associated with several loans.Mortgage loan-protection, the relationship between the mortgage loan and the collateral assets provided.Borrower-loan, the relationship between the loan and borrower identifiers.Relationship, which displays the relationships across the different levels of information.Counterparty, detailed information related to the borrower and the borrower group across different fields (financial statements, type of borrower, location, enforcement ongoing on the entire borrower, etc.). ![]() The data tape is organized in the following templates: The technical standards will apply 20 days after the publication in the Journal. Now, these drafts will be submitted to the European Commission for adoption before being published in the Official Journal of the European Union. ![]() The draft ITS are built according to the principle of proportionality and elasticity, providing users with different information according to the specific asset class of the transaction (RMBS, CMBS, retail, mixed, etc.) and different levels of information (loan, borrower, collateral, etc.). The new draft ITS does not include only the minimum information to be provided in a loan-by-loan template, but also a glossary with all the relevant information, the instructions of the template and the requirements to treat the confidential information of a transaction. The entrance of small players (both on the credit institution and investors sides) into the market.Reduction of information asymmetries between sellers and buyers (one of the biggest causes of inefficiency).Geographical comparisons of NPL portfolios.The main objectives of the draft Implementing Technical Standards (ITS) is to reduce the gap of idiosyncratic characteristics across different countries, allowing: Cardo AI’s insight on the new EBA template.Exclusion of specific exposure from the new template. ![]() Feedbacks, critics and updates on the new EBA template.
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