STS Criterion 9. Borrowers creditworthiness
From Open Risk Manual
Description
Borrower’s creditworthiness [1]
Content
The assessment of the borrower’s creditworthiness should meet the requirements set out in Article 8 of Directive 2008/48/EC or paragraphs 1 to 4, point (a) of paragraph 5, and paragraph 6 of Article 18 of Directive 2014/17/EU or, where applicable, equivalent requirements in third countries, to the extent that such standards would, according to their terms, apply to the individual underlying exposures.
Rationale
See overarching rationale for consistency with traditional qualifying framework.
Issues and Challenges
References
- ↑ EBA STS Framework for Synthetic Securitisation, EBA/DP/2019/01
