In a webinar by the Peterson Institute for International Economics (PIIE), banking expert Sebastian Mack speaks about the suitability of securitisation to address EU investment needs
Securitisation allows banks to sell credit exposures to investors with different levels of risks attached. In the European Union, the securitisation market is much less developed than in the United States. Together with host Nicolas Véron of the Peterson Institute for International Economics (PIIE) and Emmanuelle Assouan, Director General for Financial Stability and Operations at the Banque de France, our banking expert and Senior Policy Fellow Sebastian Mack discusses how much this gap matters for the European economy and its investment needs, as well as the question to what extent the gap is driven by EU financial regulations.
“It is right to look at ways to address unnecessary barriers to securitization, because when investment eventually picks up in the future, banks should be able to make full use of this instrument”, Mack exclaims during the “Financial Statements” webinar on 9 September 2024. “But there is no automatism that a bank will use the capital relief resulting from a securitisation transaction to support the real economy. It is important to bear that in mind when discussing reforms of the framework”.
The full episode can be watched on YouTube.
On 2 October 2024, Nicolas Véron will join the Jacques Delors Centre in a discussion about “A Decade of the European Banking Union: Achievements, Challenges, and the Way Forward” together with Karolin Schriever, Executive Board Member of the German Saving Banks Association. Learn more about the event and register here.