The ABS market in Europe Continuing on the development of a particular shadow banking activity, I would say that a step towards the right direction has been taken as the new regulation supports the ABS market (or securitisation market in generally) and endeavors to ensure growth, while for example the proposed regulation on structural reform in EU aims to better separate shadow banking from the traditional one.
In the wake of a balance sheet recession, the allocation of credit matters more  BIS central bankers’ speeches  1  than its aggregate amount. It is important that good borrowers rather than the bad ones are the main beneficiaries of credit growth. It is not surprising that much of the CESEE region is experiencing a slow so-called credit-less recovery.