Forslag til europaparlaments- og rådsforordning om endring av forordning (EU) 2017/2402 om fastsettelse av et generelt rammeverk for enkel, gjennomsiktig og standardisert verdipapirisering til hjelp til gjenoppretting fra covid-19-pandemien
Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2017/2402 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation to help the recovery from the COVID-19 pandemic
Dansk departementsnotat offentliggjort 1.10.2020
BAKGRUNN (fra kommisjonsforslaget, engelsk utgave)
Reasons for and objectives of the proposal
Regulation (EU) 2017/2402 (the Securitisation Regulation) together with Regulation (EU) 575/2013 (the CRR Regulation) establish a general EU framework for securitisation and create a specific framework for simple, transparent and standardised (STS) securitisation. The objective of the framework is to promote a safe, deep, liquid and robust market for securitisation, which is able to attract a broad and stable investor base to help allocate finance to where it is most needed in the economy. The new securitisation regime is in place since January 2019 and it is a cornerstone of the EU’s efforts to establish a Capital Markets Union.
The severe economic shock caused by the COVID-19 pandemic and the exceptional containment measures are having a far-reaching impact on the economy. Businesses are facing disruption in supply chains, temporary closures and reduced demand. Public authorities at Union and Member State levels have taken decisive actions to support solvent undertakings to withstand this severe but temporary slowdown in economic activity and the liquidity shortages that it will cause.
The European Commission’s summer 2020 economic forecast points to a very deep recession as economic activity collapsed in the first half of 2020 and real GDP for 2020 as a whole in the EU is projected to decline by 8.3%. The magnitude of the economic decline is thus expected to be much more severe than the one observed in 2009, while the recovery prospects are uneven and uncertain. This is why the immediate emergency measures should be complemented by targeted measures of more medium-term effect that can support a speedy recovery.
It will remain key for the banks to be able to continue lending to corporates also in the coming months once the immediate shock of the COVID-19 crisis will have passed. Therefore, it is important to prepare or upgrade any tools allowing banks to maintain and even enhance their capacity to lend to the real economy, in particular to SMEs. Securitisation can be a key enabler in this respect. By transforming loans into tradable securities, securitisation could free up bank capital for further lending and allow a broader range of investors to fund the economic recovery.
The current framework does not reach its full potential in two respects, which are very important for fostering economic recovery: the framework does not cater for on-balance-sheet synthetic securitisation and it is not entirely fit for purpose for the securitisation of non performing exposures (NPEs).
The securitisation framework will be subject to a comprehensive review with possible legislative amendments if appropriate due by January 2022. Nevertheless, the present proposal lays out targeted amendments now, given their usefulness for economic recovery. Waiting for the review of the framework in 2022 and possible legislative amendments would lead to desirable legal adjustments probably only in a few years’ time and thus frustrate the goal to use securitisation in the most efficient manner to promote the economic recovery in the coming months.
The current proposal does not substitute or diminish in any way the scope of the aforementioned review, which is mandated to take a broad look at the effects of the new regime, including issues such as the risk retention modalities, the use of private securitisations, the impact of the disclosure regime and others. The upcoming review will also take into account the recommendations of the High-Level Forum of the Capital Markets Union on scaling up the European securitisation market.
Moreover, these targeted amendments will not only make a contribution to funding the recovery, but they will also contribute to the resilience of our financial system: by extending the STS framework also to balance sheet securitisations it can be expected that the STS label with its additional requirements ensuring less complexity and more transparency will be used for a broader share of the EU securitisation market. This way we can provide additional incentives for securitisation to take place within the robust EU framework for Simple, Transparent and Standardised Securitisation and help banks find ways to share risk with capital market actors, which is one of the objectives of the Capital Markets Union project.