Bank for International Settlements' Financial Stability Institute reviews post-GFC securitisation reforms and newer regulatory initiatives

The Bank for International Settlements' Financial Stability Institute published an FSI Insights paper assessing how post-Great Financial Crisis securitisation reforms have worked in practice and whether subsequent regulatory initiatives indicate a need to recalibrate the framework. The paper situates the reforms as a response to vulnerabilities revealed during the crisis, including efforts to reduce reliance on external credit ratings, enhance risk sensitivity and improve transparency. It notes that securitisation markets have developed unevenly across jurisdictions, fuelling debate over whether conservative or prescriptive implementation may have constrained activity in some markets and triggered more recent initiatives. Against that backdrop, the analysis focuses on three questions: the extent to which the reforms achieved their objectives, whether they produced unintended consequences, and whether the securitisation regulatory framework should be revisited and adjusted.