European Investment Bank Group Activity Report 2024: Platforms for capital

Securitisation is a huge, liquid market in the United States and Asia. Europe is trying to catch up, so that there is more financing for businesses like IPM Rubi that are vital to the real economy. The European Investment Bank is investing in securitisation transactions from European banks and developing innovative securitisation structures that it hopes will lead to a bigger market, as part of its backing for the single market for capital across the continent known as the capital markets union. Compared to the United States and Asia, tight regulation has somewhat slowed securitisation's growth in Europe – particularly in the part of the market for securitisation operations with a higher rating and lower yield. To counter this, the EIB Group is backing innovative banks with big investments in securitisation transactions that create a more liquid market. It’s part of a plan by the European Union’s financing arm to promote the capital markets union. At the same time, it also unlocks financing for small and medium-sized companies (SMEs) across various sectors, including key areas such as climate and innovation. “We are increasing our participation in the securitisation market,” says Manuel Conthe, a loan officer at the European Investment Bank. “It’s an efficient way of funding loans to SMEs.”