Central banks back securitisation revival

FRANKFURT/LONDON – The European Central Bank (ECB) and Bank of England have teamed up to continue the regulatory rehabilitation of asset-backed securities (ABS) as a tool to finance European economic recovery. In a joint paper published in April 2014 and entitled The impaired EU securitisation market: causes, roadblocks and how to deal with them, the two central banks argued that securitisation, “if appropriately structured and regulated”, could strengthen wholesale funding for the real economy, including small and midsized enterprises (SMEs).