The European Commission's new revisions of its EU rules on capital requirements for banks will impose higher capital requirements for resecuritizations and propose stronger disclosure requirements for securitization exposures.The revision will also require banks to have sound remuneration practices that do not encourage or reward excessive risk-taking.

Under the new rules, banks will be restricted in their investments in highly complex re-securitizations if they cannot demonstrate that they have fully understood the risks involved, while national supervisory authorities will review banks' remuneration policies and have the power to impose sanctions if the policies do not meet the new requirements.

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