Proposals for the capital treatment of securitisation that the Basel Committee put out for consultation last week have been welcomed as simpler and more evidence-based than previous proposals it put forward last year. The committee's chairman, Swedish central bank chief Stefan Ingves, said the revised proposals and draft standards text reflected feedback to the earlier consultation. "A simpler set of approaches, more aligned to the underlying capital framework, and a revised calibration should serve the committee's goal of ensuring that securitization exposures are supported by an appropriate amount of capital," Ingves said in a statement. "These latest proposals are a move towards a more evidence-based approach, which implicitly recognizes that securitization can be a high-quality instrument, provided it is backed by high-quality assets," Richard Hopkin, head of securitisation at the Association for Financial Markets in Europe, told Compliance Complete. "The proposals of a year ago,
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