EU watchdog backs lower capital charges on some synthetic securitized debt

December 18, 2015 1:55 PM

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LONDON The European Union's banking watchdog has backed an amendment to a draft law to encourage the use of a more complex version of securitization for funding companies and freeing up bank balance sheets to lend more.

Securitization fell out of favor when debt based on poor quality U.S. home loans became untradable during the financial crisis.

Also read: ECB's Nouy urges decision on bank sovereign debt to be taken internationally

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