Recent changes to the Securitisation Regulation allow eligible servicers in the EU to retain the 5% net economic interest in traditional securitisations of non-performing exposures (NPEs). The European Banking Authority (EBA) has proposed draft regulatory technical standards (draft RTS), which if adopted will provide further detail on how servicers can determine their eligibility to act as retainer of risk.

Originally published in Butterworths Journal of International Banking and Financial Law - January 2022.