EESC urges caution in review of EU securitisation rules

The EESC has adopted an opinion on the European Commission’s proposals to amend the EU Securitisation Regulation and prudential rules for banks. While supporting efforts to revitalise the securitisation market and channel more finance into the real economy, the Committee warns against repeating past mistakes and stresses the need for strong safeguards to protect households, small businesses and financial stability.

Securitisation can help free up bank capital to support Europe’s green, digital and social transitions. The EESC also backs greater transparency, including standardised ESG reporting in securitisation templates. However, it cautions that freed-up capital must be monitored to ensure it benefits the real economy rather than being returned to shareholders.

The Committee underlines that investor protection, prudential standards and supervision must not be weakened. It opposes loopholes or automatic exemptions for publicly guaranteed tranches, which could expose taxpayers to risk, and calls for consistent EU-level supervision, full transparency across transactions and closer cooperation between supervisors and tax authorities.

The EESC concludes that securitisation can contribute to Europe’s investment needs only if it remains transparent, properly regulated and aligned with the EU’s broader economic and social objectives. (tk)