Report: “A strong, competitive Europe: unlocking the potential of securitisation“

The Association of German Banks and True Sale International GmbH established a national Financial Industry Initiative in early 2024. The Initiative aims to strengthen the European securitisation market in order to fully realise the potential of securitisations for financing the economy. The Initiative’s goal is to make a positive contribution to improving Europe’s competitiveness and to managing financing for the green and digital transitions. 

The German Financial Industry Initiative, which is sponsored by Dr. Manfred Knof, CEO at Commerzbank, and backed by the German Federal Ministry of Finance, has taken the time to develop and write a report on detailed proposals for reviving the securitisation market. The goal is to jump-start the process of introducing specific improvements into the regulatory framework. 

In particular, the report intends to 

•    translate policymakers’ repeatedly expressed intention to strengthen the securitisation market into stimuli for actual measures 
•    boost trust in this instrument with transparent proposals to amend the regulatory framework
•    submit concrete proposals for mobilising private capital by expanding the investor base and increasing liquidity
•    more broadly, make a positive contribution to the capital markets union and therefore also to financing the green and digital transitions

Securitisations have been enjoying a lot of political attention in both Germany and Europe over the past few months. Various reports commissioned by European institutions, but also multiple statements from politicians have highlighted securitisations as essential to a functioning European single financial market and called for rapid reforms in the securitisation market. This momentum must be upheld.