Skip to content

// definition

SRT

Significant Risk Transfer

Markets & clearing

Short definition

A securitisation transferring significant credit risk on a portfolio to third parties. Assets may be transferred, or retained on the bank’s balance sheet in a synthetic structure that transfers only credit risk. Synthetic transactions can be funded or unfunded. Capital relief remains subject to prudential requirements and effective risk transfer.

risk atlas

Knowledge map

Intuition

Economic risk transfer and recognition of prudential capital relief require separate assessment.

Related analyses

Primary sources