Unlocking the potential of securitisation
In October 2024, as part of a consultation on securitisation requirements, the European Commission released over 150 questions on securitisation regulations. Together, the TSI and German Banking Industry Committee submitted their answers. These answers were largely based on the proposals made in the final report published by their securitisation task force.
For some time now, there has been talk of revising securitisation regulations. We welcome the European Commission’s initiative as a step towards putting these words into action. If we are to unlock the full potential of securitisation, we must implement a variety of different measures. These include:
- A return to due diligence regulations based on principles
- Harmonising transparency requirements
- More risk-appropriate capital requirements for banks and insurers
- Revising STS criteria to be better aligned with praxis
The European securitisation market is in need of reform, and unnecessary bureaucratic hurdles must be dismantled. A series of effective and efficient measures can reinvigorate the market, making it more attractive to investors and originators while improving Europe’s ability to compete on a global stage.
