{"id":7137,"date":"2024-06-05T09:33:54","date_gmt":"2024-06-05T07:33:54","guid":{"rendered":"https:\/\/www.tsi-kompakt.de\/?p=7137"},"modified":"2024-06-12T10:08:41","modified_gmt":"2024-06-12T08:08:41","slug":"afme-proposal-to-revive-securitisations-in-europe","status":"publish","type":"post","link":"https:\/\/www.tsi-kompakt.de\/en\/2024\/06\/afme-proposal-to-revive-securitisations-in-europe\/","title":{"rendered":"AFME proposal to revive securitisations in Europe"},"content":{"rendered":"<p>The AFME report &#8220;EU Securitisation back on track &#8211; AFME&#8217;s 5-point plan&#8221; sets out comprehensive recommendations to revitalise the European securitisation market. The main proposals are summarised here:<\/p>\n<ol>\n<li><strong>Increasing the risk sensitivity within the bank prudential framework: <\/strong>AFME proposes to increase the risk sensitivity within the banking prudential framework in order to strengthen the incentives for banks to participate in the securitisation market.<\/li>\n<li><strong>Reviving demand from the insurance sector: <\/strong>The report recommends a review and adjustment of the treatment of securitisations under Solvency II in order to make securitisation products more attractive for insurance companies.<\/li>\n<li><strong>Adjustment of the treatment of securitisations in the liquidity coverage ratio (LCR):<\/strong> AFME calls for a more flexible treatment of securitisations under the LCR to increase their liquidity and attractiveness.<\/li>\n<li><strong>Introduction of proportionality for investors when conducting regulatory due diligence:<\/strong> A simplification of regulatory due diligence requirements for investors is proposed in order to lower barriers to entry and operating costs.<\/li>\n<li><strong>Fine-tuning of regulatory reporting and simplification of the criteria for simple, transparent and standardised (STS) securitisations for both traditional and synthetic securitisations:<\/strong> The proposal aims to reduce the complexity and bureaucracy currently associated with compliance with the STS criteria.<\/li>\n<\/ol>\n<p>These measures are to be implemented at an early stage of the new European Commission&#8217;s mandate to build on the ambitions of the European Council and promote the use of securitisation as a financing tool in both the private and public sectors, which in turn should drive competitiveness and growth in the EU.<\/p>\n<p><a class=\"tsi-link\" href=\"https:\/\/www.true-sale-international.de\/fileadmin\/tsi-gmbh\/tsi_downloads\/aktuelles\/AFME_EU_Securitisation_back_on_track_5_point_plan_2024-06-05.pdf\" target=\"_blank\" rel=\"noopener\">To the complete report<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The AFME report &#8220;EU Securitisation back on track &#8211; AFME&#8217;s 5-point plan&#8221; sets out comprehensive recommendations to revitalise the European securitisation market. The main proposals are summarised here: Increasing the risk sensitivity within the bank prudential framework: AFME proposes to increase the risk sensitivity within the banking prudential framework in order to strengthen the incentives<\/p>\n<div class=\"read-more\">\n<div class=\"more-dotted-line\"><\/div>\n<p><a class=\"moretag\" href=\"https:\/\/www.tsi-kompakt.de\/en\/2024\/06\/afme-proposal-to-revive-securitisations-in-europe\/\">Read More<\/a><\/div>\n","protected":false},"author":19,"featured_media":7135,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[847],"tags":[981,698,980,979,982],"class_list":["post-7137","post","type-post","status-publish","format-standard","has-post-thumbnail","category-regulatory-update-en-2","tag-due-diligence-audits","tag-european-securitisation-market","tag-liquidity-coverage-ratio-en","tag-risk-sensitivity","tag-sts-criteria","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AFME proposal to revive securitisations in Europe - TSI kompakt<\/title>\n<meta name=\"description\" content=\"The AFME report &quot;EU Securitisation back on track - AFME&#039;s 5-point plan&quot; sets out comprehensive recommendations to revitalize the European securitization market. 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