Recital 6

(6)The current Union prudential framework for securitisation is designed on the basis of the most common features of typical securitisation transactions, namely performing loans. In its Opinion on the Regulatory Treatment of Non-Performing Exposure Securitisations ⁶ (the ‘EBA Opinion’), the European Banking Authority (EBA) pointed out that the current prudential framework for securitisation set out in Regulation (EU) No 575/2013 leads to disproportionate capital requirements when applied to securitisations of NPEs because the Securitisation Internal Ratings Based Approach (SEC-IRBA) and the Securitisation Standardised Approach (SEC-SA) are not consistent with the specific risk drivers of NPEs. A specific treatment for the securitisation of NPEs should therefore be introduced, building upon the EBA Opinion as well as internationally agreed standards.