Regulations for securitisation and covered bonds: Too much or too little

Arif, Ahmed

Abstract

This study analyses the most important regulations for asset-backed securities and covered bonds devised after the global financial crisis in Europe. The study presents three perspectives of these regulations. It discusses the premises and context of these regulations and highlights the asymmetric treatment of these two instruments. The premises of the regulations are inspired by the market criticism and are not in line with the theoretical understandings of securitisation. Moreover, most of these regulations are influenced by the situation in the US market and there is a need to recalibrate these regulations on European realities. The asymmetric treatment given to these instruments is also a matter of concern as it may harm the fundingbase diversification. The study emphasises that regulations must be reconsidered and aligned with the European realities creating a level playing field for all the market players and instruments.

• Journal Article Type: Article
• Acceptance Date: Dec 6, 2018
• Online Publication Date: Oct 30, 2019
• Publication Date: Oct 9, 2019
• Deposit Date: Feb 11, 2022
• Publicly Available Date: Feb 15, 2022
• Journal: European Company and Financial Law Review
• Print ISSN: 1613-2548
• Electronic ISSN: 1613-2556
• Publisher: De Gruyter
• Peer Reviewed: Peer Reviewed
• Volume: 16
• Issue: 5
• Pages: 535-556
• DOI: https://doi.org/10.1515/ecfr-2019-0019
• Keywords: Law; Economics, Econometrics and Finance (miscellaneous)
• Public URL: https://uwe-repository.worktribe.com/output/9007933
• Publisher URL: https://www.degruyter.com/document/doi/10.1515/ecfr-2019-0019/html