ECB Steps Up Scrutiny of SRT Boom as It Fast-Tracks Some Deals
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The European Central Bank said it will intensify how it monitors significant risk transfers as it speeds up approvals for some of the deals.The watchdog will increase its scrutiny of risks for individual banks and the wider system to ensure its decision to use fast—track permissions on a subset of SRTs doesn’t lead to “undue risk-taking and a weakening of resilience,” the ECB said in a statement on Friday. It vowed to take “adequate measures” if the use of securitizations raises prudential concerns.