Christian Stiefmueller, of Finance Watch, emphasized the exaggerated discussions surrounding the revival of securitisation, highlighting the lack of practical benefits for alternative financing in the EU.
Finance Watch states that only 30% of structured loan products reach capital markets, indicating that potential reforms could disproportionately benefit banks over increasing actual lending.
The EU's hope to mimic US securitisation success could ignore the risk of exposing taxpayers to bailouts due to unproven benefits in actual lending growth.
Historically, the misuse of securitisations led to a financial crisis, yet some in banking believe current regulations excessively inhibit market activity.
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