Parliament passes securitization ‘quick fixes’

The European Parliament voted on Tuesday to pass a package of amendments to the securitization framework aimed at freeing up bank balance sheets and increasing lending to the real economy. The so-called "quick fixes" were left largely unchanged, helping the proposals push quickly on to the trilogue process.
Rules around non-performing loans (NPLs) and synthetic banking are set to be eased, allowing banks to commit more of their capital towards originating new loans to help boost lending during the Covid-19 pandemic.
The legal changes, if they survive in their current form, will see certain synthetic securitizations ...Already a subscriber? Login