FRANKFURT (MNI) – The European Central Bank today released the
details of data reporting requirements on individual loans that are
contained in asset-backed securities submitted as collateral in
Eurosystem refinancing operations.

The ECB had decided in December 2010 to implement such reporting
requirements. A verbatim text of the ECB’s statement follows:

“The Governing Council of the European Central Bank (ECB) decided
in December 2010 to implement loan-level data reporting requirements for
asset-backed securities (ABSs) as part of the Eurosystem’s collateral
framework. Preparatory work has been concluded and the Governing Council
also took note of the creation of a European DataWarehouse, the single
loan-level data repository that could be used for the handling of
loan-level data reporting.

In this context, the mandatory provision of loan-by-loan
information for ABSs is to be introduced as follows:

— For residential mortgage-backed securities, this will be
mandatory as of 1 December 2012;

–For ABSs whose underlying assets include loans to small and
medium-sized enterprises, and for commercial mortgage-backed securities,
it will be mandatory as of 1 January 2013;

–For consumer finance ABSs, leasing ABSs and auto loan ABSs, it
will be mandatory as of 1 January 2014.

Loan-level data are to be provided in accordance with the templates
available on the ECB’s website, at least on a quarterly basis. The
Governing Council has also decided on details and modalities of the
implementation process, which are outlined below.

Details Relating To Loan-Level Data Reporting

–A nine-month phasing-in period, starting on the date indicated
above, applies for each asset class. Where loan-level data are
incomplete on that date, they must gradually be completed in the course
of that transitional period.

–To monitor compliance with the loan-level template requirements
and to check the timeliness, consistency and level of completeness of
loan-level data, the single loan-level data repository will
automatically check ABSs for which loan-level data are submitted and
assign them a score. This score will strictly reflect the specific
requirements set out in the provisions governing the Eurosystem’s
collateral framework.

–To enable effective reporting of loan-level data, the cash
flow-generating assets backing an ABS must all belong to the same asset
class — i.e., the ABS’s underlying assets must consist of a homogeneous
pool, so loan-level data can be reported in one single template matching
the underlying assets.

ABSs that are unable to comply with the loan-level data reporting
requirements because they consist of mixed pools of heterogeneous
underlying assets and/or do not conform to any of the loan-level
templates will remain eligible until 31 March 2014. These requirements
will be introduced by means of an amendment to the Guideline of the ECB
of 20 September 2011 on monetary policy instruments and procedures of
the Eurosystem.”

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