European Commission welcomes political agreement on EU securitisation reforms to simplify requirements and adjust prudential treatment

The European Commission welcomed a provisional political agreement between the European Parliament and the Council on reforms to the EU securitisation framework. The package seeks to support securitisation activity while preserving financial stability safeguards. It marks the first legislative deliverable under the Savings and Investments Union, which aims to channel savings into productive investment through capital markets and the banking system. The proposed amendments to the Securitisation Regulation reduce operational burdens and streamline due diligence and transparency requirements. Changes to the Capital Requirements Regulation would make the prudential treatment of securitisations more risk sensitive. These measures aim to diversify funding sources, improve risk sharing and support additional lending to households and businesses, including small and medium-sized enterprises. The agreement remains subject to technical finalisation and formal approval by both the Parliament and the Council.