Securitisation: EU agreement reduces banks’ capital requirements to ensure safer transactions
First legislative step regarding capital markets
(Il Sole 24 Ore Radiocor) - The Council and the European Parliament have reached a provisional political agreement on measures to revitalise and simplify the securitisation market. This will enable banks to free up more capital than is currently the case and to channel more loans to households, SMEs and infrastructure projects. To this end, it will reduce capital requirements for the safest and best-structured transactions, in particular for a new category of ‘resilient’ securitisations. It will also reduce the administrative burden on market participants. The relevant legislative texts must now be finalised and formally approved by both co-legislators. The European Commission emphasises that this is the first legislative achievement within the framework of the Savings and Investment Union, which aims to better channelling savings towards productive investments through the capital markets and the banking system.
Aps
