18. A transaction should be deemed to invalidate the conditions for significant risk transfer if …

A transaction should be deemed to invalidate the conditions for significant risk transfer if, as a result of the transaction, the reduction in risk-weighted exposure amounts the originator institution initially achieved is no longer justified by a commensurate transfer of credit risk to third parties. The factors to be considered should include:

• (a) the credit risk of the originator institution after undertaking the transaction; and
• (b) the extent to which the capital or liquidity position of the originator institution is affected by the transaction.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/