European Parliament approves deal aimed at reviving the EU’s securitisation market
MEPs have today given their final approval to legislation aimed at reviving the EU’s securitisation market, which since the financial crisis has stagnated, while the US market has grown. The legislation puts in place additional safeguards, such as enhanced transparency, to avoid the risk of securitisations being misused in the same way they were during the financial crisis. ALDE believes that the compromise reached in May is balanced and will give opportunities for companies in Europe to expand their funding base, leading to more jobs and growth.
ALDE shadow rapporteur, Petr Ježek MEP, commented:
“The STS Securitisation regulation is a key milestone as we move towards a Capital Markets Union. I believe that carefully monitored, high quality securitisation can serve to benefit businesses across Europe: in the EU as a whole we are too reliant on loans and other forms of funding from banks. Capital Markets give businesses a new avenue for funding for their activities.”
“The diversification of funding is important to help deliver more growth for the European economy. During our negotiations on this regulation, we tried to find the right balance between the lessons learned from the financial crisis, and having a framework which ensured that we did not stifle the potential of the securitisation market.”
“We have enhanced the transparency of securitisation markets, notably through the establishment of data repositories which will enable competent authorities to have a full overview of the products in the market, while ensuring that those who are responsible for originating securitisation products take full responsibility for the products placed in the marketplace.”
The final agreement, adopted today, can be found here