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Market Innovations

C 52/2017 STA Effective from 1/12/2022

141.As the minimum capital requirements for securitisation may not be able to address all potential issues, the Central Bank will consider new features of securitisation transactions as they arise. Such assessments would include reviewing the impact new features may have on credit risk transfer and, where appropriate, the Central Bank will be expected to take appropriate action under Pillar 2. A Pillar 1 response may be formulated to take account of market innovations. Such a response may take the form of a set of operational requirements and/or a specific capital treatment.