EU reaches agreement on reviving the securitisation market

News | 07.06.17

Stock exchange and securities
On 30 May, the European Parliament, the Council and the Commission agreed to revive the European securitisation market. The basis for the agreement was the European Commission's proposal from 2015 on new securitisation rules.

The agreement sets out criteria for simple, transparent and standardised securitisation (STS) and will constitute one of the cornerstones of the Capital Markets Union, the Juncker Commission's project to build a single market for capital in the EU.

Valdis Dombrovskis, Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union, said: "This agreement marks another big step towards the creation of a Capital Markets Union. It will help build a sound and safe securitisation market in the EU, bringing real benefits to investment, jobs and growth. It will free up bank lending so that more financing can go towards supporting our companies and households."

The agreement will be followed by further technical talks to finalise the legal text. The final legal text will be presented to the European Parliament for a plenary vote

The press release from the EU Commission emphasizes that the new EU legal framework provides a clear set of rules to ensure that STS securitisations benefit the real economy. The new rules on securitisation will restore an important funding channel for the EU economy without endangering financial stability.

The new rules on securitisation will have to be incorporated into the EEA-agreement before being implemented in Norwegian law.