European Central Bank Banking Supervision said its periodic monitoring of Greek banks’ securitisations under the Hellenic Asset Protection Scheme has found no indication that the conditions for recognizing significant risk transfer have changed since its initial case-by-case assessments under Article 244 of the Capital Requirements Regulation. Continuing its earlier clarification of its supervisory role, the ECB said transaction-level confidentiality prevents it from disclosing whether it has objected to significant risk transfer recognition in individual cases. The ECB assesses whether credit risk transferred to third-party investors is commensurate with the resulting reduction in risk-weighted exposures. Its review covers quantitative factors, including tranche thickness, retained positions and the balance between capital relief and transferred losses, as well as structural features such as call options and amortization profiles. It also examines whether originators retain control, may repurchase positions beyond contractual obligations, or provide implicit support, and monitors relationships among originators, investors, servicers and other participants. Monitoring relies on information collected directly from originating banks, rather than from the HAPS monitoring trustee. The ECB adopts a formal decision only when it objects to recognition of significant risk transfer. Otherwise, it informs the originator that it does not object.
2026-08-28European Central Bank - Banking Supervision
European Central Bank Banking Supervision reports no change in risk transfer conditions for Greek HAPS securitisations
European Central Bank Banking Supervision reported no indication that significant risk transfer conditions for Greek HAPS securitisations have changed since the initial assessments. It reviews and monitors each transaction using information from originating banks, while transaction-specific conclusions remain confidential.