EU Considers Bank-Liquidity Tweak to Bolster Securitization
Buildings on the city skyline in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Commission is considering changes that would make it more appealing for banks to hold asset-backed securities as part of their emergency cash reserves.
The move is part of a broader plan to revive Europe’s €1.2 trillion ($1.4 trillion) securitization market, which politicians hope can play a key role in financing areas like housing, energy, and defense.