Ghost of Truth on Nostr: Eurozone: Is Reviving Securitization the Answer On Its Problems? The Eurozone (and ...
Eurozone: Is Reviving Securitization the Answer On Its Problems?
The Eurozone (and this means trouble for the EU too) is grappling with a significant issue—its banking system and government finances are in big trouble. The Eurozone's credit engine has slowed, and liquidity is in short supply, while the private economy remains mired in recession. It's themoment where central planners step in with massive intervention. And rather than learning from the past mistakes of the financial and debt crises, it appears policymakers are betting on collective amnesia, hoping investors have forgotten the fallout to apply vehicles that already failed.
In a bid to inject liquidity swiftly, calls are emerging to relax regulations, particularly in the securitization market (remember? Finance weapons of mass destruction). Bernd Loewen, a board member of Germany's state-owned KfW Bank, has voiced clear expectations for EU legislators. He advocates for easing the regulatory burden on securitizations compared to other financial instruments. "European securitizations have been unjustly penalized in the aftermath of the financial crisis," Loewen noted. He believes future capital requirements should be strictly risk-based, rather than a blanket approach, to unlock liquidity.
https://www.boersen-zeitung.de/banken-finanzen/kfw-wirbt-fuer-eu-verbriefungsreform
#Eurozone #Banking #LiquidityCrisis #Securitization #EU #Regulation #FinanceNews #Economy
The Eurozone (and this means trouble for the EU too) is grappling with a significant issue—its banking system and government finances are in big trouble. The Eurozone's credit engine has slowed, and liquidity is in short supply, while the private economy remains mired in recession. It's themoment where central planners step in with massive intervention. And rather than learning from the past mistakes of the financial and debt crises, it appears policymakers are betting on collective amnesia, hoping investors have forgotten the fallout to apply vehicles that already failed.
In a bid to inject liquidity swiftly, calls are emerging to relax regulations, particularly in the securitization market (remember? Finance weapons of mass destruction). Bernd Loewen, a board member of Germany's state-owned KfW Bank, has voiced clear expectations for EU legislators. He advocates for easing the regulatory burden on securitizations compared to other financial instruments. "European securitizations have been unjustly penalized in the aftermath of the financial crisis," Loewen noted. He believes future capital requirements should be strictly risk-based, rather than a blanket approach, to unlock liquidity.
https://www.boersen-zeitung.de/banken-finanzen/kfw-wirbt-fuer-eu-verbriefungsreform
#Eurozone #Banking #LiquidityCrisis #Securitization #EU #Regulation #FinanceNews #Economy