KfW supports the revival of the European securitisation market

• Securitisation can make a major contribution to financing the transformation
• An expert initiative from the financial industry with the involvement of KfW has led to concrete proposals
• The goal: to reinforce Europe’s future viability and competitiveness
• Handover of report to State Secretary Heiko Thoms

Berlin – At today’s event between the Association of German Banks (BdB) and True Sale International GmbH, a report titled “A strong, competitive Europe: unlocking the potential of securitisation” was presented to State Secretary Heiko Thoms, Federal Ministry of Finance, with the participation of KfW Executive Board Member Bernd Loewen. KfW has been a long-standing supporter of the securitisation market in Germany and for that reason was involved in the report's preparation as part of an industry-wide initiative under the patronage of Manfred Knof, Member of the Executive Board of BdB.

"Banks cannot manage the financing of the transformation alone. Since there are no 'real' alternatives to bank financing, especially for SMEs, securitisation acts as a bridge between banks and the capital market. By placing the risks outside the banking sector, banks can grant more loans and thus strengthen the economy as a whole",

stated Bernd Loewen in Berlin on Monday.

The main recommendations for action in the report are to remove unnecessary bureaucratic hurdles and reduce the capital requirements for low-risk securitisation, thereby making the market more attractive for investors.

The dual transformation requires a significant amount of financing that can only be raised through the financial markets. For this reason, incentives shall be created to mobilise private capital for investment in the transformation via securitisation.

More information is available at Report – “A strong, competitive Europe: unlocking the potential of securitisation” (bankenverband.de)