Securitisation is "dead in Europe", say critics of new EBA proposals

Graveyard

New rules for the securitisation market amount to "death by a thousand cuts", according to banking industry critics, who say the latest instalment – European Banking Authority (EBA) proposals on how to add up securitisation exposures – will dramatically curb demand for the assets from bank investors. Up to 70% of securitised debt in Europe ends up on bank balance sheets, according to some estimates. The Basel capital framework prevents banks having exposures to other single partie