Public support for securitisation as part of the financing of the dual transformation continues: Paris Europlace has published a report on the role of securitisations in financing the EU agenda.
After a French working group chaired by Christian Noyer published its final report on revitalising the Capital Markets Union in spring (see TSI kompakt of 2 May) and AFME presented a 5-point plan for securitisation in the EU in June (see TSI kompakt of 5 June), the Paris Europlace report is now the third major one of its kind this year.
With regards to the European Commission’s forthcoming consultation on the securitisation markets in autumn, this is very welcome as the proposals all essentially go in the same direction. This is particularly important in view of the very hesitant reception of individual proposals from the market by regulators in recent years.
Contents of the Paris Europlace report
The report formulates measures with regard to four main goals, namely regulatory relief for the supply side (originators) and the demand side (investors), winning back insurers as investor group and attracting more market participants (EU and non-EU). The report also addresses the persistent stigma of securitisations and attempts to refute this with facts and arguments.
It is also worth mentioning that the report takes up the Noyer Group’s proposal for a European securitisation platform. The Paris Europlace working group does not consider this to be feasible in the short term. The Noyer Group had proposed standardisation at European level, including the inclusion of state guarantees.
What’s next?
A lot is happening in the year of the European elections, and many positions are being formulated in relation to securitisations. The European Commission’s announced consultation is eagerly awaited. Then it will be important to see whether the many sensible proposals from the market will be taken up and actually implemented this time.
To the full report from Paris Europlace