The EACB welcomes the opportunity to comment on the European Commission’s Consultation on Securitisation, which takes account of both high-level (e.g. Eurogroup statement, Noyer Report, Draghi Report, Letta Report) and industry contributions in the context of the CMU/SIU discussions aiming at revitalising the securitisation market in the EU.
Against this background, we recommend to revisit the EU securitisation framework to create a more supportive environment for EU securitisations and create the appropriate incentives so that also smaller and simpler institutions, including cooperative ones, may approach the securitisation market.
For instance, this can be done by:
- facilitating securitised products based on SME loans.
- Simplifying the due diligence process, which is is too complex and involve many overlapping reporting requirements, creating a significant obstacle for the full development of the market.
- Exploring the potential streamlining of the framework for STS securitisations, as it did not increase the use of securitisation as a financing channel.
- Lowering the capital requirements for holding securitisations and reducing the p-factor accordingly, at least for STS issuances.
- Amending the liquidity risk treatment of securitization in order to attract more banking investors.
For more details on our response please refer to our detailed response.