European Central Bank Publishes Draft Guidance on Leveraged Transactions

On December 19, 2016, the firm published an alert titled “European Central Bank Publishes Draft Guidance on Leveraged Transactions.” On November 23, 2016, the ECB published draft guidance on leveraged transactions (the “ECB Guidance”).

The ECB Guidance is primarily designed to ensure that banks conduct leveraged activities in a safe and sound manner. Supervised credit institutions are expected to define their own appetite for leveraged transactions and adopt internal policies for underwriting and syndicating such transactions, as well as to monitor the resulting leveraged exposures.