Press remarks by Commissioner Albuquerque on the review of the EU securitisation framework

European Commission -Speech [Check Against Delivery] Press remarks by Commissioner Albuquerque on the review of the EU securitisation framework Strasbourg, 17 June 2025 Good afternoon, Today in College, we have approved the securitisation package. Let me start by saying briefly in layman's terms what this is about. Securitisation is a tool used in financial markets that allows banks to package parts of their assets - namely loans, for example - and those packaged loans can be sold to other financial market participants like insurance companies, pension funds, or other banks. Why is this relevant? Because it allows banks to have more room to lend. The changes that we are proposing will also allow banks to do this in a more efficient way. So we expect to see additional lending - potentially at a lower cost - to the economy, corporates, namely SMEs, and households. We also expect to get from here a better connection between banking and capital markets, because these packaged loans - these securitisations - will actually be traded as capital markets products. And it will also allow us to have a better risk management because the risk will be distributed across the financial sector. I would also like to highlight that this is an instrument that did cause problems in financial markets in the past, namely in the great financial crisis, but one should not confuse the instrument and its misuse. The instrument itself is important for financial markets. It does allow a...