ECB Unites With BOE in Call to Ease Asset-Backed Bond Rules
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The European Central Bank and the Bank of England said regulators must support and promote the asset-backed bond market, ensuring that rules to safeguard the financial system don’t unnecessarily impair the securities’ use.
Officials “responsible for the regulatory treatment can change incentives to participate in the ABS market,” the central banks said in a joint paper published today. “It would be important that the authorities seek to ensure that new regulations at global and EU levels do not act to the detriment of the securitization market.”