The Governing Council of the European Central Bank (ECB) has decided to establish loan-by-loan information requirements for asset-backed securities (ABSs) in the Eurosystem collateral framework.
ECB Governing Council intends to introduce the loan-by-loan information requirements approximately within the next 18 months, first for retail mortgage-backed securities (RMBSs) and thereafter gradually for other ABSs.
According to ECB, loan-level data will be provided in accordance with the template which is available on its website, at least on a quarterly basis on, or within one month of, the interest payment date of the instrument in question.
To allow the processing, verification and transmission of the data, the Eurosystem will encourage market participants to establish the necessary data-handling infrastructure.
ECB said when the necessary data-handling infrastructure has been established, the provision of loan-by-loan information will become an eligibility requirement for the instruments concerned.
The Eurosystem will continue to accept securities not meeting the new information criteria until the obligation to submit loan-level data comes into force.