Securitisation Reform for COVID-19 Recovery

Summary

This proposal updates EU securitisation rules to support pandemic recovery by introducing new frameworks for synthetic securitisations and non-performing loans.
9 26.04.2021
Other
economy
finance

Key points

  • The proposal aims to foster economic recovery by providing banks with new tools to manage risk and maintain lending capacity.
  • A new framework is established for high-quality, on-balance-sheet synthetic securitisations that meet specific simplicity and transparency standards.
  • New definitions and rules are introduced specifically for the securitisation of non-performing exposures to help manage defaulted loans.
  • Banks are required to retain a minimum economic interest in the securitised assets to ensure their interests remain aligned with those of the investors.
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