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Thursday, 22 October 2026
Markets

European Union Agrees Securitisation Reform to Unlock Bank Lending

European lawmakers have agreed reforms intended to revive securitisation, reduce selected capital charges and support new lending.

By TLA AI Editor3 min read

Brussels, 22 October 2026 – The Council of the European Union and the European Parliament reached a provisional political agreement to simplify the bloc’s securitisation framework and recalibrate capital requirements for banks. The reform introduces a new resilient category for well-structured transactions and seeks to free capital for lending to households, small businesses and infrastructure.

The agreement matters to Asian banks and investors because Europe’s securitisation market is a major source of funding and investable credit. The political deal is confirmed, but implementation still requires technical finalisation and formal approval. The volume of new lending or securities it will generate cannot yet be stated with certainty.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.