Europe Pushes for More Clarity on Bank Lending to SRT Buyers (1)

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.

“We’ve been asking for more transparency, more reporting information,” Jose Manuel Campa, who leads the European Banking Authority, said in a Bloomberg TV interview on Monday in London. “Potentially you get a vicious circle by which a ...