Objectives of the session
Securitisation is a key instrument for the development of capital markets and acts as a bridge between the European banks and asset-based funding. It allows investors to access asset classes such as real estate mortgages, auto loans and corporate loans (including those of SMEs) that would not be investible on an individual basis otherwise. Securitisation also offers opportunities for accessing additional funding sources for the transition to a more sustainable economy.
However, despite the introduction in the EU of a bespoke framework defining a Simple Transparent and Standard securitisation, despite also the recalibration of securitisation insurance and bank securitisation frameworks, and although policymakers have always expressed ambition regarding the securitisation, so far related regulatory evolutions have proven unable to relaunch the market.
In this context the session is aimed at finding out the main the sticking points, which prevent an effective take-off of the securitisation market in the EU. It will also, try to find out the critical political decisions to relaunch EU securitisation necessary for lifting those impediments.
Questions to be addressed
- What are the main reasons explaining the actual performance of the EU securitisation market?
- Has the STS regime addressed the securitisation stigma?
- Is there any calibration issue in the EU? For what reasons? How do securitisation capital constraints on banks and insurance undertakings notably, compare across regions globally, and to the other financing tools available?