Initiatives to foster the developments of the capital market, including the securitisation market, to complement the role of the banking system are particularly useful in the euro area. With respect to securitisation, we have to be aware of the numerous constraints on the revival of ABS public issuance.
These include in particular some proposed changes to the regulatory framework, which may reduce incentives to invest in certain types of ABS in the long term. Such constraints need to be properly addressed. The regulatory treatment for securitisation should acknowledge the credit performance and ensure an unbiased level playing field with other securities regarding risk, rating and maturity.