Article 11 | Delegated Regulation 2023/2175

Updated 05/02/2025

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Article 11 - Delegated Regulation 2023/2175

Article 11

Measurement of the material net economic interest to be retained for exposures in the form of drawn and undrawn amounts of credit facilities

The calculation of the net economic interest to be retained for credit facilities, including credit cards, shall be based on amounts already drawn, realised or received only and shall be adjusted in accordance with changes to those amounts.

Recitals Article 1 - Definitions Article 2 - Retainers of a material net economic interest Article 3 - Fulfilment of the retention requirement through a synthetic or contingent form of retention Article 4 - Retention equivalent to not less than 5 % of the nominal value of each of the tranches sold or transferred to investors Article 5 - Retention of the originator’s interest in a revolving securitisation or securitisation of revolving exposures Article 6 - Retention of randomly selected exposures equivalent to no less than 5 % of the nominal value of the securitised exposures Article 7 - Retention of the first loss tranche Article 8 - Retention of a first loss exposure of not less than 5 % of every securitised exposure Article 9 - Application of the retention options on traditional NPE securitisations Article 10 - Measurement of the level of retention Article 11 - Measurement of the material net economic interest to be retained for exposures in the form of drawn and undrawn amounts of credit facilities Article 12 - Prohibition of hedging or selling the retained interest Q&A Article 13 - Transactions for which the retention requirement does not apply, as referred to Article 6(6) of Regulation (EU) 2017/2402 Article 14 - Retention on a consolidated basis Article 15 - Requirements on the allocation of cash flows and losses to the retained interest and on fees payable to the retainer Article 16 - Fulfilment of the retention requirement in securitisations of own issued debt instruments Article 17 - Retention requirement in resecuritisations Article 18 - Assets transferred to the SSPE Article 19 - Expertise requirement on the servicer of traditional NPE securitisations Article 20 - Repeal Article 21 - Entry into force

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Article 11 - Delegated Regulation 2023/2175

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