EU Seeks Input on Securitization Revamp for Banks’ Buffers (1)

The European Commission is planning public consultations about the possible broader adoption of asset-backed securities by banks for emergency cash reserves.

The move is part of a larger strategy to revive Europe’s €1.2 trillion ($1.4 trillion) securitization market, for which authorities want a bigger role to finance housing, defense and other sectors. In a typical year, about €200 billion of debt is packaged into securities in the region, compared with around €2 trillion in the US, according to the European Money and Finance Forum.

The executive arm of the European Union published draft amendments on Tuesday to regulations governing banks’ ...