WSBI position paper explores securitisation, prospectus
>> See the WSBI Intitutional Positions for G20 decision makers (.pdf)
BRUSSELS, 23 September 2016 – Even though traditional bank financing is crucial, it can be usefully complemented by non-bank financing instruments such as asset-based finance, alternative debt, crowdfunding and hybrid instruments.
In addition, the resurgence of a functioning securitisation market can be supported provided that criteria for identifying simple, transparent and standardised securitisations are developed. However, an important part of the securitisation market which is necessary for the banking system to place parts of their credit risk exposure to professional investors should not be neglected: synthetic securitisation. Furthermore, access to the SME growth market should be as flexible as possible due to the particularities of SMEs and companies with small market capitalisation; imposing a rigid format (even if it is simplified) could be burdensome for these kinds of companies.
As a possible solution and, in order to maintain the balance between flexibility and investor protection, a set of principles (less onerous) could be set up covering the information to be requested in those markets. This, for instance, is the objective of the review of the Prospectus Directive in the European Union.