Join us for an engaging #FBFDiscuss as we delve into the dynamics of the EU securitisation market and its role in shaping the sustainable future of the European economy. 

Since the American subprime mortgage crisis in 2007, stringent regulatory attention has focused on the securitisation market. Following the burst of the housing bubble, several major financial institutions defaulted in September 2008. A severe banking crisis followed, threatening, in an unexplored and deregulated setting, the global financial system. 

As part of its reaction to the global financial crisis, the EU embarked on the mission to create a Capital Markets Union, but this is yet to be achieved. Many factors contribute to the EU securitisation market remaining dull and below its expected capacity, but one can argue that the existing EU regulatory framework plays an important role. In July 2022, the European Systemic Risk Board report welcomed securitisation reforms in the EU, including ESMA’s new reporting requirements, and the Securitisation Regulation (EU) 2017/2402 (known as EU Securitisation Regulation or SECR). Yet, the ESRB report also showed that the European securitisation market "[…] is small compared with that of the United States and that it has shrunk since the global financial crisis (GFC) of 2008."

The EU securitisation regulatory framework is very rigorous and more stringent than the Basel III standards in many respects. At the global level, in August 2023, the Financial Stability Board (FSB) launched a Securitisation Evaluation, and the input that will be received will be used for the FSB to launch a public consultation in early 2024. In the EU, a comprehensive review of the framework will only take place in the next legislative mandate of 2024-2029, but the Banking Package/Basel III Agreement – concluded in June 2023 – includes minor changes in the EU Securitisation framework which may not necessarily contribute to revamping the EU securitisation market. Is the current EU securitisation regulatory framework an impediment to the development of a competitive EU securitisation market?

Debate motion: This House believes that the current EU securitisation market can support the transition to a sustainable European economy.

Our distinguished speakers, Anne Schaedle (Proponent) from the European Commission and David Ramos Muñoz (Opponent), Associate Professor of Commercial Law, will present their perspectives on whether the current EU securitisation regulatory framework hinders or supports the development of a competitive market. Engage in a debate moderated by Maria Ana Barata, Research Associate at the Florence School of Banking and Finance, and gain valuable insights into the EU securitisation market.

Don't miss this opportunity to be part of a crucial discussion on the path to a sustainable European economy. Reserve your spot now!

Speakers:

Anne Schaedle, European Commission, Head of Unit at DG FISMA A.1 Policy Definition and Coordination.

David Ramos Muñoz, Associate Professor of Commercial Law at Carlos III University of Madrid and Visiting Professor at the University of Bologna.

Event-related readings:

• European Systemic Risk Board Report Monitoring systemic risks in the EU securitization market , July 2022, p. 2.
• Financial Stability Board, Evaluation on Effects of G20 Reforms on Securitisation: Summary Terms of Reference , 20 August 2023.
• Council of the EU Press release, 27 June 2023, Banking sector: Provisional agreement reached on the implementation of Basel III reforms.