On 30 August, the G20 Financial Stability Board (FSB) published a consultation paper on the impact of the changes in financial regulation since 2008 on the securitisation market. In the consultation, the FSB essentially wants to collect assessments and evidence from market participants on the following questions:
- The regulatory requirements for securitisations have increased significantly after the financial crisis in 2008, in particular regarding
- the risk-adequate capital backing of securitisation positions,
- transparency and disclosure,
- risk retention and
- rating procedures
To what extent have these changes addressed the information asymmetries and incentive problems associated with securitisation markets and thus contributed to financial market stability?
- What impact have the reforms since 2008 had on the dynamics and structure of securitisation markets? What consequences derived for the financing of the real economy?
The consultation is deliberately very broad and serves as input for a preliminary report by the FSB, which will be consulted in early 2024. The final report is to be published around mid-2024. In our view, the FSB's report will be decisive for the upcoming discussion on the impact of financial market regulation on securitisation markets.
The FSB will accept comments from market participants until 22 September 2023. The TSI will actively accompany the consultation and prepare a corresponding statement. If you have any questions or comments on this consultation, please do not hesitate to contact the TSI.