BaFin, the German financial markets regulator, has cleared a new product allowing financial institutions to sell assets into German special-purpose vehicles (SVP) funded by asset-backed securities without needing a banking licence.The product was developed by Dutch bank ABN Amro. The bank said the SVP structure is flexible enough to allow the purchase of various asset classes including corporate, mortgage and consumer loans. It takes advantage of recent tax changes in Germany, providing trade tax exemption for securitised bank assets, it added.
“The German securitisation market is poised to enter a new phase in its development as a result of this decision,” said Mike Newas, global head of asset securitisation in ABN Amro’s financial markets business.
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