Europe’s securitisation market has failed to stage a strong recovery since the financial crisis, despite the credit performance of most asset-backed securities in Europe over the past few years and the resilience of secondary prices.

Bankers have blamed regulators, who fail to appreciate the value of the market to help refinance economies and have not allowed banks to count asset-backed securities towards their liquidity ratios. This is a major constraint given that banks have been the main buyers of these assets in Europe.