Europe Pushes for More Clarity on Bank Lending to SRT Buyers

Jose Manuel Campa on June 30.Photographer: Betty Laura Zapata/Bloomberg

European authorities are pushing banks to disclose more data on loans to investors who turn around and use the funds to help peers offload credit risk, according to a top regulator.

Regulators want to ensure that risk is actually leaving the system when banks use significant risk transfers, or SRTs, to free up capital while keeping the assets on their balance sheets.