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Basel reversals provide small step for ABS

The Basel Committee's decision to allow asset-backed securities to count towards safety buffers will not lead to a 'dramatic shift' in the moribund securitisation market – although bankers have still welcomed the move

The Basel Committee on Banking Supervision’s decision to allow asset-backed securities to count towards their safety buffers will not lead to a “dramatic shift” in the moribund securitisation market, although bankers have still welcomed the move.

The committee, which is behind the international banking framework Basel III accord on capital and liquidity, said yesterday that higher-rated securitisation transactions will be allowed to be included in banks' liquidity coverage ratios.

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