French securitisation ruling likely to be delayed further

The French banking regulator ruling to change the capital risk weighting system on securitisations continues to cause confusion, with market commentators stating that a final decision may be delayed until September.

The French banking regulator, Commission Bancaire, caused a furore when it released a bulletin in April this year stating that all investors in the subordinated tranche of a securitisation, which it defined as anything below an A- rated tranche, would be required to deduct the holding against capital, where previously they needed to hold 20% capital.

Following considerable pressure from French banks, the Commission Bancaire agreed to issue a formal bulletin clarifying its position by the end of

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