Joint Committee advice on the review of the securitisation prudential framework

The Joint Committee of the European Supervisory Authorities (hereafter the “JC”) received a call for advice (CfA) from the European Commission (EC) in October 2021 to assess whether the current securitisation framework, including its prudential aspects, is functioning in an optimal manner and to single out potential areas for improvement.

The JC welcomes the opportunity to assess the capital and liquidity framework for securitisation and have thoroughly reviewed the aspects on which the EC has requested feedback. This advice includes targeted recommendations to support the securitisation market in a prudent manner and to promote the issuance of resilient securitisations qualifying for a more beneficial capital treatment, without jeopardizing investor protection and financial stability.