Council and EP reach provisional political agreement on EU securitisation package

The Council of the EU and the European Parliament (EP) have announced that they have reached provisional political agreement on the European Commission's securitisation package, which was first published in June 2025. The measures aim to revive and simplify the EU securitisation market. The Council of the EU explains that the updated framework will enable banks to free up more capital than is currently the case and channel increased lending to households, small and medium-sized enterprises, and infrastructure projects. It will also reduce administrative burdens for market participants. The securitisation package forms part of the EU's savings and investments union.

The agreed amendments to the original proposals include re-calibrating capital requirements on a risk-sensitive basis for banks investing in securitisations; introducing a new 'resilient' category of securitisations and strengthening the simple, transparent and standardised (STS) label; reducing administrative burdens and strengthening EU-level supervision, including for the independent entities that verify STS compliance; and supporting greater institutional investment and cross-border participation.

The relevant legal texts must now be finalised and formally endorsed by both the Council of the EU and the EP.

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