European Bank Watchdog Weighs Setting Up Green SRT Framework

The European Banking Authority is considering developing a framework for lenders to issue synthetic risk transfers on loans that are specifically related to green projects.

The regulator “may start looking at it next year,” Roberta De Filippis, team leader for securitization and covered bonds at the EBA, said at a conference in Barcelona on Wednesday.

The European Union is leaning on banks and investors to finance a massive overhaul of its economy with projects ranging from fighting climate change to shoring up its armed forces. Broader work on securitization in the bloc is a key plank to ensure the financial ...