Vlad Maly and Michal Chajdukowski present the key takeaways from a package of amendments to the existing EU securitization framework, published by the European Commission on June 17, 2025.

The proposals aim at incentivizing EU banks to engage in more securitization activity. The goal is to strengthen the banks’ lending capacity, which is needed to finance strategic EU priorities, including in the defense sector. Among other things, the Commission proposes to simplify due diligence and transparency requirements, introduce greater risk sensitivity, and address the perceived overcapitalization requirements that apply to investments in certain securitization exposures.

While the impact of these measures on reviving the EU securitization markets remains uncertain (even in the eyes of EU financial authorities), the European Commission is not stopping there, announcing additional measures designed to incentivize insurers and certain retail funds to invest in securitization transactions, that are expected to be published in the coming weeks.

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