Together with German Banking Industry Committee (GBIC), TSI has submitted a response to the ESAs’ Article 44 consultation (see TSI compact article dated 12 December 2023). The joint drafting of the opinion with TSI’s partners and further cooperation with the German banking industry enabled extensive feedback to be consolidated with broad coverage of the German market.
Key contents of our statement
Together with our stakeholders, we have therefore used this important opportunity to emphatically point out the current problems in the securitisation market to the supervisory authorities, in particular:
- Capital requirements too high with regard to the risk involved
- Excessively bureaucratic, inappropriate and therefore cost-intensive transparency requirements
- Competitive disadvantages for European market participants due to high documentation obligations as part of due diligence requirements
- Inconsistent regulation of green financial products, including securitisations.
Furthermore, we have used our feedback to point out some areas for improvement in the STS regulation, in particular with regard to homogeneity requirements, the need for an SSPE in traditional securitisations, collateral requirements for synthetic securitisations, inappropriate rules regarding trade receivables and historical data.
Next Step: Report of the Joint Committee
As a next step, the Joint Committee of the ESAs will analyse the feedback received and prepare a report on the current functionality of the Securitisation Regulation in the course of the year. We strongly recommend that the issues raised by market participants be taken on board in order to create a basis for improving the problem areas of the Securitisation Regulation in future. In conclusion, the market is unanimous: under the current conditions, the European securitisation market will not be revitalised as intended by the Securitisation Regulation!