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RegulationsApril 4

Will the EU’s securitisation revival bring more capital relief for banks?

Securitisation could free up capital for lending to the real economy, but increase exposure to shadow banks
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Will the EU’s securitisation revival bring more capital relief for banks?Image: Alex Kraus/Bloomberg

The European banking industry is readying itself for regulatory changes that will allow the revitalisation of the securitisation market, which has stagnated following the global financial crisis — despite growth in other regions.

Securitisation, supporters argue, could widen the scope of funding instruments for banks, move risks away from their balance sheets, and free up capital for lending to the real economy.

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Barbara Pianese is the Latin America editor at The Banker. She joined from Mergermarket, where she spent four years covering mergers and acquisitions across Europe with a focus on the consumer sector. She holds an MA in International and Diplomatic Affairs from the University of Bologna having studied in Brazil and France as well.
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