🇪🇺 EU securitization package: European Parliament moves on
This week, the “Securitization package” is on the EU Parliament’s agenda. MEP Ralf Seekatz presents his position on the Securitization Framework in the ECON Committee covering both the CRR and SecReg.
The outcome of the negotiations in the European Parliament will shape the future of synthetic and unfunded securitization - essential tools to boost capital efficiency, risk diversification, more lending and strengthened financing for SMEs and markets in Central and Eastern Europe.
The draft reports contain many good proposals! In addition, further improvements are necessary:
- simplification of the senior tranche definition by removing remaining complex provisions,
- enhance clarity in regulatory technical standards to ease supervisory burden,
- revisit sanctions, as these risk deterring investors and harming market growth,
- fully grandfather existing securitizations with flexible transition rules to ensure market stability and investor confidence, and
- ensure that the changes lead to simplification rather than added complexity.
📌 The EU must decide whether securitization is a strategic tool for growth and resilience - or a heavily constrained niche product.