The Central Bank of San Marino has launched a public consultation on a draft circular updating supervisory provisions on consolidated financial statements and the prudential regime for system securitization. The proposal would streamline and align disclosure requirements for corporate and consolidated reporting, and add a minimum capital coverage backstop for originator banks exposed to junior and mezzanine asset backed securities (ABS) issued under the system securitization framework. On financial reporting, the draft amends Circular No. 2017-03 (Disclosure Requirements for Corporate and Consolidated Financial Statements) and aligns related aspects of Circular No. 2017-04 (Disclosure Requirements for the Statements of Accounts), including changes to templates and compilation instructions for credit exposure dynamics, prudential aggregates, and the time-bucket distribution of financial assets and liabilities. It also updates specific tables and legends (including adding “joint control”), clarifies which tables are completed by credit institutions and investment firms, and removes one table on employee termination benefits. For Circular No. 2017-04, the draft revises quarterly additional information so that reporting entities permitted to carry out lending activity provide updates on changes in credit quality classifications, new lending, collections and repayments, and write-offs. On system securitization (Circular No. 2022-01), the backstop would require each originator bank’s combined regulatory capital coverage and accounting coverage (via impairments) to be at least its share of any negative differential between securitization assets and liabilities, allocated by reference to holdings of junior ABS up to the total junior outstanding nominal value and mezzanine ABS for any excess beyond that, with any shortfall covered using excess regulatory capital above minimum requirements. The consultation closes on March 19, 2026. The draft sets application dates of the 2025 financial year for most Circular No. 2017-03 changes (with the revised prudential aggregates table from the 2026 financial year), the 31 March 2026 reference date for the Circular No. 2017-04 reporting change, and 1 July 2026 for the Circular No. 2022-01 securitization changes, with first recognition in the prudential supervisory return as at 30 September 2026.
Central Bank of San Marino 2026-02-17
Central Bank of San Marino opens consultation on consolidated disclosure simplifications and a prudential backstop for system securitization ABS
The Central Bank of San Marino has initiated a public consultation on a draft circular to update supervisory provisions on consolidated financial statements and the prudential regime for system securitization. The proposal aims to streamline disclosure requirements and introduce a minimum capital coverage backstop for originator banks exposed to junior and mezzanine asset-backed securities. Key amendments include changes to financial reporting templates and revisions to securitization capital coverage requirements.