Towards a better European securitisation market

Thursday, 3 November 2016
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The European securitisation market experienced constant growth for almost a decade prior to the financial crisis, but it then plunged precipitously and has never fully recovered. Since 2009, in an effort to revive securitisation and channel funds to the real economy, European authorities have introduced a considerable amount of new regulations/legislation, for example, in the areas of banking, insurance, asset management and credit rating agencies. In this ECMI Commentary, however, Apostolos Thomadakis finds that these measures have not achieved the expected results and calls for more to be done. In concrete terms, he calls upon Europe to:

  1. issue securitisation products with transparent and easy-to-understand structures,
  2. streamline and consolidate EU financial services legislation and
  3. devise smart ways of making cross-border investments easier.    

Apostolos Thomadakis is Researcher in the European Capital Markets Institute (ECMI).