Background
The current EU securitisation framework is based on Regulation (EU) 2017/2402, which establishes both a general framework for securitisation and a specific framework for simple, transparent and standardised (STS) securitisation.
In a rapidly evolving financial landscape, remaining static equates to falling behind and Europe simply may not take such risk, making instead good usage of securitisation as a channel to seek liquidity and means of finance to support the transformations much required to be accomplished. This has been recognised by the European Council, the Eurogroup, and the Letta and Draghi reports, as well as by the Commission’s political guidelines of July 2024. All point to the urgent need to modernise the securitisation regime and promote its interface with emerging financial technologies, including tokenisation.
The Commission proposes therefore targeted amendments to eliminate barriers, align rules with market developments, and strengthen the role of securitisation in financing the real economy. These reforms, under the SIU Strategy, aim as well to boost capital markets, facilitate SME and household lending, and contribute to preserve financial stability.
Legislative package
The legislative package is to be considered as a single package. The success of the EU securitisation framework depends not just in the individual proposals being submitted but on the combination of all the proposed changes contained in each and everyone of the proposals.
The Package consist of the following, separate, proposals:
- Proposal for a Regulation amending the Securitisation Regulation
- Proposal for a Regulation amending the CRR
- Proposal for a Delegated Regulation amending the LCR
