European Finance Observatory

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STS securitisation (simple, transparent and standardised)

STS (simple, transparent and standardised) is an EU label for securitisations that meet criteria set by the Securitisation Regulation, verified by the originator and optionally by an authorised third-party verifier, and notified to ESMA. Banks hold less capital against STS positions than against other securitisations.

Also written as STS · simple, transparent and standardised

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This is a brief definition. A full explanation with a worked example is being written.

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Updated 1 Nov 2026.