Article 243 › 4

As an alternative to paragraphs 2 and 3, competent authorities shall grant permission to originator institutions to consider significant credit risk as having been transferred where the originator institution is able to demonstrate, in every case of a securitisation, that the reduction of own funds requirements which the originator achieves by the securitisation is justified by a commensurate transfer of credit risk to third parties. Permission shall be granted only where the institution meets all of the following conditions: (a) the institution has appropriately risk-sensitive policies and methodologies in place to assess the transfer of risk; (b) the institution has also recognised the transfer of credit risk to third parties in each case for purposes of the institution's internal risk management and its internal capital allocation.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04