Notice No. 6/2000 of the Bank of Portugal

Notices from the Bank of Portugal Notice No. 6/2000

Considering that credit institutions and financial companies, as assignors of credits in "securitization" operations, which, within the scope of these operations, assume commitments or receive asset or off-balance sheet elements, must possess own funds that are consistent with the risks assumed:

The Bank of Portugal, using the competence conferred on it by paragraph a) of Article 99 of the General Regime of Credit Institutions and Financial Companies, determines the following:

Items 7 and 8 are added to Part I of the annex to Notice No. 1/93, published in the Diário da República, 2nd series, of June 8, 1993, with the following wording:

"7 - Assignor institutions of credits in 'securitization' operations that, within the scope of these operations, assume commitments or receive asset or off-balance sheet elements must consider as own fund requirements the value to which they would be subject if they kept the assigned credits in their assets.

8 - The own fund requirements referred to in the previous number may, however, have as a maximum limit the sum of the value of the commitments assumed and the asset and off-balance sheet elements received by the institution within the scope of the 'securitization' operation in question."

Lisbon, October 24, 2000. - The Governor, Vítor Constâncio.