Therefore, a differentiated assessment of financial instruments is required. Let me elaborate on the reasons why the ECB is interested in this particular market segment: First, the ABS market acts as one of the transmission channels of our monetary policy, facilitating the provision of credit to the euro area real economy and, thereby, helping us to achieve our monetary policy objective.
Second, ABS are an important component of the collateral framework of the Eurosystem. Third, securitisation, when used well, can transfer risk away from the banking sector, which may support monetary policy as it can help banks free up bank capital, allowing them to extend new credit to the real economy.