Abstract:

Some years after the subprime crisis regulators started to change their thinking about securitisation having noticed its advantages. At first, their efforts to create a more friendly environment for securitisation were rather shy. A true acceleration of these efforts could be seen after COVID-19 and its devastating effects on banks’ balance sheets and the real economy. The Securitisation Regulation came into force on 1 January but due to the pandemic it later began to be amended and adjusted. A huge wave of these adjustments have taken place in 2021. Market participants, however, have pointed out the regulations’ numerous loopholes and shortcomings. This has led to an amendment of the SR in April 2021 the EC is to report on the SR’s functioning 1 January 2022.

As we observe the works, amendments and comments, however, it is proper to say that the consultation process that concentrates on:

• the impact of the regulation on the securitisation market
• private securitisations
• equivalence regime for non-EU entities regarding STS
• disclosure of information on ESG and sustainable finance

may not be the end of the SR upgrade. This is partially because of the new events and facts that influence the European securitisation framework. Yet, regulators seem to be somewhat resistant to make use of this technique for fear of being blamed if something goes wrong.