The EU has determined that securitisation can soften the negative economic impact of the pandemic and assist in the recovery from this impact. The European Commission proposals to amend Regulation (EU) 2017/2402 (“STS Proposal”) and Regulation (EU) No 575/2013 (“CRR Proposal”) are intended to preserve the ability of banks to continue lending to companies, especially small and medium-sized companies, by updating the current securitisation regulatory framework. Within the sophisticated Dutch securitisation market, some Dutch credit institutions have already been exploring synthetic securitisations. As a result of the introduction by the STS Proposal of a specific framework for simple, transparent and standardised synthetic on-balance-sheet securitisations, we expect many more to follow this path.
Jorien Reestman is a member of the Banking & Finance Practice Group of Baker McKenzie's Amsterdam office. She joined Baker McKenzie in 2018.