Parliament passes securitization ‘quick fixes’

EuropeanParliament_Adobe_575x375_9July2020
By Tom Brown
11 Nov 2020

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 ...

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