Auke Zijlstra, an MEP affiliated with the PfE group, has stirred debate by questioning the European Commission's approach to deregulating the EU securitisation market. His inquiry highlights potential conflicts between the Commission’s plans and the concerns voiced by key financial supervisors—namely, the European Central Bank (ECB) and the Single Supervisory Mechanism (SSM). This exchange is particularly relevant for banks, investors, and regulatory authorities, whose risk exposures and operational frameworks may be reshaped by this evolving securitisation landscape.
Zijlstra’s parliamentary question, filed on 16 October 2025, seeks clarifications on whether the Commission interprets warnings from ECB President Christine Lagarde and SSM Chair Claudia Buch as critiques of the Commission's securitisation proposals. He also probes the Commission on the broader economic effect of securitisation in reinforcing bank-dependent financing rather than promoting a more diversified equity culture within the Capital Markets Union (CMU). Furthermore, Zijlstra requests details on how the Commission plans to manage specific risks linked to securitisation, such as credit, liquidity, early repayment, and market risks.
In response, the Commission, through Ms. Albuquerque, indicates that its securitisation package maintains robust standards while easing obstacles for market growth. It highlights adherence to the recommendations from European financial authorities and commits to risk-sensitive capital requirements that only lower capital charges for low-risk securitisations. The package aims to facilitate increased bank lending by allowing risk transfer to investors, carefully balancing deregulation with risk management.
Policywise, the dialogue centers on whether to prioritize an expansion of securitisation market activities by relaxing regulatory barriers, or to emphasize stringent safeguards that may limit risk but constrain bank financing. This tension reflects a cleavage between strengthening market-based finance within CMU versus potential increases in systemic risk borne by non-bank investors.
The implications are substantive: banks may benefit from enhanced lending capacity and capital relief, potentially boosting economic growth. Investors gain broader asset classes but face increased exposure to transferred risks. Regulatory authorities must monitor these shifts closely to manage financial stability, while EU taxpayers and civil society hold an indirect stake given the possible systemic risk repercussions.
The Commission is expected to formally respond within the standard parliamentary timeframe, confirming its stance on the securitisation framework’s direction. This reply will be a crucial signal for future regulatory balance and risk management in the EU financial sector.