Leaseurope, along with Eurofinas and 30 other European financial service organizations, support EU policy makers’ efforts to revive European high quality securitizations markets.
In a joint letter from both the buy and the sell-side, the group affirmed that securitization has the potential to contribute greatly to the European economy by providing finance to European businesses and households. Specifically, by allowing banks to transfer assets to other capital market participants in a robust, regulated and transparent manner, securitization would allow banks to lend more without the need to raise new capital thus unblocking lending channels for the European economy which will be particularly beneficial for SMEs and households.
The organizations set out 10 key points that they believe need the European Parliament’s attention to turn the positive Commission proposals into a workable scheme capable of financing the European economy.
“The extent to which securitization is used varies significantly among our members, largely due to the diminishing amount of investors. This is why we support the European Union’s commitment to stimulate securitization as part of its commendable Capital Markets Union Action Plan,” said Leon Dhaene, director general of Leaseurope and Eurofinas. “Our federations are strongly committed to work together with European policy makers and other industry participants to achieve a fair and balanced securitization framework which supports the real economy.”
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