NPL Update – Recent Changes To The EU Securitisation Regulation And CRR

In our recent publication "Securitisation Update – Recent Amendments and Guidance" we considered new amendments to the EU Securitisation RegulationOpens in new window and the Capital Requirements RegulationOpens in new window ("CRR") which took effect on 9 April 2021. Several of these changes are relevant to participants in the European Non-Performing Loans market. We have summarised the key provisions below:

Key Definitions added to the EU Securitisation Regulation

"non-performing exposure" or "NPE"  is defined as an asset which meets the requirements set out under Article 47a(3)Opens in new window of the CRR.

"NPE Securitisation" means a securitisation backed by a pool of non-performing exposures the nominal value of which makes up not less than 90% of the entire pool's nominal value at the time of origination and at any later time where assets are added to or removed from the underlying pool due to replenishment, restructuring or any other