Securitisation is the process of transforming a batch of debts into a marketable security, that is backed by the original debts. This process can increase the availability of credit, increasing investment and supporting economic growth in a way that increases competitiveness and improves labour market.
This own-initiative opinion will present a thorough description of the challenges and opportunities that come with securitisation, and provide concrete policy proposals for a possible future revision of the securitisation regulation.
Adopted on 29/10/2020 - Bureau decision date: 14/07/2020
The EESC welcomes the proposals to establish a system of "simple, transparent and standardised" securitisation (STS securitisations), that should enable significant additional resources to be generated for bank funding. That is very important, for SMEs and households in particular. There should be clarity as to the risk involved and who bears that risk, taking account of the whole chain from the issuer to the investor. It is important now is that the mistakes of the past are not repeated. Small investors and consumers should not have access to securitisation due to the complexity and risk involved, the Committee calls for a formal prohibition to be explicitly included in the texts.
EESC opinion: A legal framework for simple, transparent and standardised securitisation
