Securitisation can strengthen the EU’s financial system by expanding lending, supporting the green and digital transitions, and improving financing resilience, particularly in periods of stress. Although issuance remains well below pre-crisis levels and trails other major jurisdictions, the basic economic case for securitisation remains strong. With targeted legal, regulatory and institutional support, it can help channel long-term capital to underserved sectors and improve the efficiency of credit intermediation across the continent.
This study presents securitisation as part of a broader funding and risk-transfer ecosystem. Its value lies not only in mobilising additional financing for SMEs, households and infrastructure. It also complements other financing tools – from bank lending to covered bonds and more. Instruments like synthetic risk transfer, green asset-backed securities and public mezzanine support can help free up capital and broaden investor participation.
International experience shows that successful securitisation markets rely on legal clarity, proportionate disclosure, predictable supervisory treatment and institutional backing. Under realistic scenarios, a stronger EU securitisation market could free up EUR 16-32 billion in Tier 1 capital annually and support EUR 130-320 billion in new lending per year, amounting to more than EUR 1 trillion over five years. Reforms should therefore focus on making significant risk transfer more predictable, tailoring disclosure for private deals, recalibrating capital treatment for senior tranches and supporting the pooling of green and digital assets.
