Banks to Get EU Approval to Use Wider Range of ABS Debt
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European Union banks are set to win the right to use a wider range of asset-backed debt to meet their liquidity requirements as the bloc hunts for ways to boost the market for such securities.
The European Commission is advocating that securitizations of loans to small businesses and consumers including car buyers should be allowed to count for as much as 15 percent of the buffers banks will be required to hold under the rule, according to an EU document obtained by Bloomberg News.