Commission welcomes political agreement on review of Securitisation Framework
Yesterday, the European Commission welcomed the political agreement reached between the Parliament and the Council of the EU on the review of the EU Securitisation Framework. The agreed measures aim to support securitisation activity in the EU while safeguarding financial stability.
This is the first legislative deliverable under the Savings and Investments Union, which seeks to better channel savings into productive investment through capital markets and the banking system. A stronger securitisation market can help diversify funding sources, enhance risk-sharing, and support additional lending to households and businesses, including small and medium-sized enterprises.
The proposal includes targeted amendments and simplifies the Securitisation Regulation by reducing operational burdens and streamlining due diligence and transparency requirements. It also amends the Capital Requirements Regulation to make the prudential treatment of securitisations more risk sensitive.
The provisional agreement is a significant step forward in supporting more investments into the real economy – supporting economic growth, innovation and job creation across the EU. It also marks an important step in delivering on the ‘One Europe, One Market’ roadmap. Last week, the European Council reaffirmed the importance of finalising the securitisation package by the end of this year.
Commissioner for Financial Services and the Savings and Investments Union, Maria Luís Albuquerque, said: “This agreement on the securitisation framework strikes the right balance between preserving the safeguards that protect Europe’s financial stability and creating the conditions to stimulate the market. These new rules aim to support EU securitisations to increase funding for EU households and businesses. A dynamic securitisation market is essential to the Savings and Investments Union, and key to mobilising the private capital Europe needs to compete and grow. I thank the European Parliament and the Council for their constructive work in reaching this swift agreement.”
The proposal now awaits technical finalisation and formal approval by both the Parliament and Council. Once adopted by the co-legislators, the amendments will be published in the Official Journal of the European Union and will enter into force immediately.
