In a Strasbourg speech on 21 November 2016, Mario Draghi, President of the ECB, urged the European Parliament to end regulatory uncertainty and bring its deliberations on proposals to introduce a ‘Simple, Transparent, and Standardised’ (STS) securitsation framework to a conclusion. He said:
“In particular, the negotiations concerning the securitisation regulation need to be finalised soon. Securitisation can play a very important role in increasing bank funding to the economy but regulatory uncertainty is detrimental to European securitisation markets. We consider that the Commission has put forward a strong package that balances a revival of the European securitisation markets with the preservation of a prudent regulatory framework.”
The European Commission put forward proposals to promote 'simple, transparent and standardised' (STS) securitisation in September 2015. The main objectives were:
However, the European Parliament has taken a full year to review these urgently needed changes and will not vote on the issue until mid-December 2016 at the earliest.