ECON vote on securitisation paves the way for further trilogue negotiations

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has adopted its report on overhauling the European securitisation framework. The European Parliament has now laid out its position, which will serve as the basis for upcoming trilogue negotiations with the Council and the Commission. The trilogue is scheduled to begin in early June.
The Association of German Banks and True Sale International (TSI) expressly welcome the agreement reached. This is an important step towards moving the legislative process forward more speedily. The objective must be to conduct the trilogue negotiations efficiently and to conclude the reform process by the end of 2026 at the latest.

“We are seeking regulation that sets appropriate capital requirements for securitisation, so that the potential for growth and stability can be fully realised,” emphasised Heiner Herkenhoff, CEO of the Association of German Banks.

It all comes down to the upcoming trilogue negotiations. “It is crucial that the parties involved in the trilogue reach an agreement that strengthens the securitisation market. It’s important that no new obstacles are introduced, that complexities are reduced and that greater legal certainty is ensured,” said Jan-Peter Hülbert, Managing Director of TSI.

It is regrettable, however, that the European Parliament’s final draft falls short of the rapporteur’s original ambitions. Bearing this in mind, the Association of German Banks and TSI believe the upcoming trilogue negotiations are particularly important.

Securitisation will play a key role in financing the sustainable and digital transition by mobilising additional funds for investment in businesses and future-oriented projects. This is just one of the ways in which banks are fulfilling their vital role of providing key support for the financing of the economy.