On 7 June 2019, Regulation (EU) 2019/876 ("CRR
II")1 was published in the Official
Journal of the EU. CRD II amends the Capital Requirements
Regulation in a number of respects. For securitisation market
participants, a key change is an amendment to Article 14 of CRR and
its effect on the application of key obligations in the
Securitisation Regulation to members of a consolidated banking
group.
The Article 14 Issue
Article 14 of the CRR, as amended by the 2017 CRR Amendment
Regulation2 (which was introduced at the same time as
the Securitisation Regulation), applies the obligations concerning
transparency requirements, risk retention, due diligence, criteria
for credit-granting and the ban on re-securitisation to EU
institutions subject to the CRR on a consolidated basis. The
drafting of Article 14, as it existed at the time the
Securitisation Regulation began to apply, provided that all of
these requirements could apply on a consolidated basis to a
