- The Association of German Banks and True Sale International present their report to the German Federal Ministry of Finance
- Sponsor Dr. Manfred Knof, CEO of Commerzbank: “Mobilise capital to master the greatest challenges of our times.”
- Create a strong, competitive Europe via securitisation
Berlin, 16 September 2024 – today, an expert Financial Industry Initiative presented their comprehensive report, including detailed measures for strengthening the securitisation market, to the German Federal Ministry of Finance. Sponsored by Manfred Knof, CEO of Commerzbank AG and member of the Board of Directors at the Association of German Banks, the report details the proposals developed over the past months. The goal of these proposals is a targeted reform of the securitisation market that will unlock its full potential.
“Over the past few years, we in the financial sector have been very clear on the importance of securitisations, but have found little support on the political and regulatory level,” emphasised Knof in his speech. “Now, however, securitisations are once again seen as an important and meaningful instrument. They represent an essential link between bank-based corporate financing and the capital markets. In fact, they are practically indispensable when it comes to generating the capital needed to master the greatest challenges of our times,” said Knof, speaking of the “crucial green and digital transitions.”
The report from the Association of German Banks and True Sale International offers a deep analysis of obstacles currently faced by the securitisation market, as well as detailed proposals for both European and national reforms. “In order to sustainably strengthen the securitisation market, we need a whole series of improvements at various points within the regulations,” Knof explained. He pointed in particular to the very complex European Securitisation Regulation, saying it resulted in high transaction costs and drove many investors towards other investment options.
The main focus of the report is the removal of unnecessary bureaucratic barriers and the reduction of capital requirements for low-risk securitisations. These measures will increase the appeal of the market for investors. “Effective measures could jump-start the market and attract additional investors over the long term,” according to Knof.
He went on to appeal to political decision-makers, asking them to uphold the current momentum: “Securitisations are essential for financing the economic transition, in particular due to their linking role. That’s why we need to get the securitisation market up and running as quickly as possible.”
You can find more information, including the full report here.
