Securitisation Standards Redrawn: German Credit Industry's Joint Call
Frankfurt, Germany
Financial institutions petitioning for a waiver from certain regulations
In unison, the leading associations of Germany's credit sector — including the Bundesverband deutscher Volksbanken und Raiffeisenbanken, the Deutscher Sparkassen- und Giroverband, and the Association of German Public Banks — have put forth a unified position on the overhaul of European securitisation regulations. In collaboration with the global initiative True Sale International (TSI), these financial powerhouses are lobbying for a swift, streamlined adjustment of capital requirements for securitisation transactions.
Unburdened by legalese, let me break it down: The German credit industry is fed up with the stringent application of the existing EU Securitisation Regulation (EUSR), taking particular issue with the intricate disclosure templates, such as Article 7, for private securitisation deals encompassing international transactions. They're crying out for leniency and a more flexible, risk-based approach from national regulators, as they patiently await simpler private securitisation templates designed to accommodate third-country securitisation transactions as well [1].
On the issue of securitisation capital requirements, these heavyweights have joined forces, advocating for a quick adjustment. They're gunning for a regulatory landscape that more closely aligns with the real-world risks and financial realities of securitisation transactions, thereby giving credit institutions the green light to engage in such activities without the unwarranted burden of excessive capital costs [1][5]. Regrettably, the specifics of their proposed amendments remain under wraps in the search results. But the essence of this lobbying aligns neatly with broad industry demands to ensure that capital frameworks don't stifle securitisation, a major financing and risk management tool for banks [1][5].
Long story short:
- The German credit sector is pushing for a brief, pragmatic enforcement period of securitisation disclosure rules, especially as they apply to intricate, cross-border securitisation deals, highlighting the need for simplified templates to alleviate the pressure [1].
- They're championing a prompt, strategic recalibration of capital requirements under the EU securitisation regulation to account for actual risks more accurately, potentially reducing capital charges on securitisation exposures and stimulating market activity [1][5].
This collective stance sends a powerful message: a balanced approach to the EU securitisation rule revisions — striking a harmony between preserving transparency and risk management while keeping the regulatory framework accessible and supportive of financial market stability in Germany and the wider EU landscape.
- The German banking-and-insurance sector, led by associations like the Bundesverband deutscher Volksbanken und Raiffeisenbanken and the Deutscher Sparkassen- und Giroverband, is advocating for a more flexible, risk-based approach to securitization regulations in Europe, particularly in the context of complex, international business transactions, seeking simpler disclosure templates and leniency from national regulators.
- In response to the intricate disclosure requirements and high capital charges under the EU Securitisation Regulation, these finance powerhouses, including the Association of German Public Banks, are also calling for a swift adjustment in capital requirements, aiming to ensure a regulatory landscape that more closely aligns with the real-world risks and financial realities of securitization transactions, thereby stimulating market activity and supporting the overall stability of the European business sector.
