Prudential Practice Guide: APS 120 Securitisation

This guide outlines APRA’s view of sound practice for authorised deposit-taking institutions (ADIs) regarding securitisation, supporting compliance with Prudential Standard APS 120. It clarifies definitions for securitisation, resecuritisation, and senior exposures, and details requirements for separation, disclosure, and capital adequacy. The document specifies operational requirements for significant credit risk transfer, the consistent use of external credit assessments, and due diligence on underlying collateral. It also addresses restrictions on implicit support, liquidity facilities, and spread accounts to ensure arm's-length dealings between ADIs and special purpose vehicles.

Australia

Australian Prudential Regulation Authority

Topics

capital

disclosure