EU Banks May Get Asset-Backed Security Liquidity Leeway
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The European Union is considering allowing banks to deploy a wider range of asset-backed debt than permitted by international rules to meet liquidity requirements, as policy makers hunt for ways to boost lending.
The European Union’s regulatory arm may propose that securitizations of loans to small businesses and consumers including car buyers should count toward the standard, according to a European Commission document obtained by Bloomberg News. Securitization is the conversion of loans into tradable securities.