STS Criterion 10. Originators expertise
From Open Risk Manual
Description
Originator’s expertise [1]
Content
The originator or original lender should have expertise in originating exposures of a similar nature to those securitised.
Rationale
See also overarching rationale for consistency with traditional qualifying framework.
In light of the criterion that requires that the underlying exposures should refer to a core lending/business activity of the originator/purchaser of the credit protection, this criterion appears less relevant in case of synthetic securitisations than in case of traditional securitisations.
It is however still kept as due to strategic decisions institutions may define new core/business activity in respect of which respective expertise has yet to be developed.
Issues and Challenges
References
- ↑ EBA STS Framework for Synthetic Securitisation, EBA/DP/2019/01
