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Review of the Securitisation Framework

In “A new plan for Europe's sustainable prosperity and competitiveness”

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In its work programme published on 11 February 2025, the European Commission announced that it would review EU's securitisation framework with a legislative proposal expected. The initiative is part of the savings and investments union (SIU) policy action for which a communication was planned, and effectively published on 19 March 2025. The objective of the SIU is to provide a major blueprint for measures to create a true internal market for capital. Ultimately, the SIU is aimed at facilitating access investment and funding opportunities to EU economy, help financial institutions to achieve scale and become more competitive on the global market, and help the EU meet its unprecedented funding needs.

On 17 June 2025, the Commission published a package of proposals to amend the securitisation framework. The Commission announces that the purpose of the review is to 'remove undue issuance and investment barriers' in the EU securitisation market, specifically:  

  • Undue operational costs for issuers and investors, balancing with adequate standards of transparency, investor protection and supervision;
  • Adjust the prudential framework for banks and insurers.

The package is composed of 4 proposals amending two regulations and two delegated regulations., namely:

  • Regulation (EU) 2017/2402 laying down the securitisation framework;

  • Regulation (EU) No 575/2013 on capital requirements for banks holding and investing into securitisation - known as the capital requirement regulation, CRR;

  • Commission Delegated Regulation (EU) 2015/61 on Liquidity Coverage Ratio (LCR);

  • Commission Delegated Regulation (EU) 2015/35 on capital requirements for insurance and reinsurance undertakings, known as Solvency II.

The European Economic and Social Committee (EESC) adopted an opinion on 18 September 2025 supporting the objectives of the proposal, and recommends that the review of the templates include the environmental, social and governance (ESG) information. It also proposes to harmonise the various monitoring, reporting and review clauses, and recommends a fast-track monitoring mechanism for bank supervisors. Supervision should be more coherent, consistent and harmonised.

The European Central Bank (ECB) issued an opinon in November 2025 where it supports the proposal adding detailed remarks about modifications. For instance, the ECB recommends to pay attention to the impact of the proposed amendments concerning synthetic securitisations; if not properly managed by originator credit institutions, large synthetic securitisations can create procyclicality due to rollover risk and have adverse effects on financial stability if volumes become significant. It also welcomes the Commission's new concept of 'resilient transactions', but the proposed recalibration of the existing requirements appears excessive and complex.

In Parliament, the committee responsible is the Committee on Economic and Monetary Affairs (ECON); rapporteur, Ralf Seekatz (EPP, Germany). The draft of the report was published on 11 December 2025 and debated in ECON on 15 January 2026. The deadline for amendments was set to 27 January 2026.

The Council announced its position on 19 December 2025. Overall, the Council seeks a balanced approach to securitisation markets expansion, on the one hand, and preserving financial stability, on the other. Among others, low-risk securitisations would benefit from lower capital requirements than now; the Commission's proposed safer 'resilient' securitisation category is maintained; The Council proposes to alleviate administrative duties. On the demand side measure, the investment limit for undertakings for collective investment in transferable securities (UCITS) is raised from 10% to 50% of securities in a single public securitisation. As compared to the proposal, the Council tightens the homogeneity requirements for SME-backed pools seeking the simple, transparent and standardised (STS) label; those pools would yet be allowed to include SME loans from multiple Member States.

References:

Further readings

Author: Issam Hallak, Members' Research Service, legislative-train@europarl.europa.eu

As of 20/02/2026.