EU weighs tarnished bonds to help fund growth
Reshaping securitisation market canadian goose jacket may cheap Canada Goose help
Insurers say can invest if rules don tie their hands
BRUSSELS, March 25 (Reuters) A form of debt that turned toxic to unleash the global financial crisis could help the European Union fund growth as banks rein in lending, the bloc executive body said on Monday.
The buy canada goose jacket European Commission said in a policy paper on long term investment that reforms were needed to generate funds for investing in industry, canada goose uk outlet infrastructure and education.
Banks have canada goose traditionally supplied 85 percent of financing in Europe canada goose uk shop but lenders now say they have to tie up capital because of new rules aimed at averting the public bailouts seen canada goose store during the 2007 09 financial crisis.
EU policymakers, also faced with risk averse savers and cash strapped canada goose clearance sale governments, are exploring other ways to raise money to revive economies hit by a canada goose clearance sovereign debt crisis.
securitisation markets could also help unlock additional sources Canada Goose Jackets of long term finance, the policy paper said.
to appropriate oversight and data transparency, they can help financial institutions free capital, which can then be mobilised for additional lending, and manage risk, the paper added. home loans became untradeable in 2007, wreaking havoc at banks that bought them.
is scope to develop simple securitisation products based on clear and unleveraged structures, using well selected, diversified and low risk underlying assets, the paper said.
In a move Canada Goose Parka that will be welcomed by banks, the paper said there may be a need to consider if all the uk canada goose outlet new rules banks must comply with hamper their ability canada goose factory sale to fund investment.
Markets for covered bonds, a product similar to securitised debt but which remains cheap canada goose uk on the issuer books, could also be canada goose coats reformed to raise more funds, the paper Canada Goose Outlet said.
INSURERS USURP BANKS There could also be a bigger role for pension funds, life insurance companies and stock markets in funding investment.
banks reduce their exposure to long term real Canada Goose Online assets as a consequence of increasing liquidity requirements, institutional investors with long term liabilities could fill Canada Goose Coats On Sale the gap as long Canada Goose sale as the regulatory framework avoids an excessive focus on short term volatility, the paper said.
Insurers had Canada Goose online more than 7.7 trillion euros ($10 trillion) in assets under management at the end of 2011 and provided direct and indirect funding for infrastructure projects, mortgages, government debt and canada goose coats on sale corporate finance, which help spur economic growth, trade body Insurance Europe said.
The sector is worried that risk buy canada goose jacket cheap capital rules known as Solvency II, expected to come into force in 2016 or 2017, will make it too canada goose uk black friday expensive to invest in canada goose black friday sale long term assets.
is vital that any changes do not jeopardise insurers ability to provide this much needed long term financing and stability to the economy, said Sergio Balbinot, Chief Insurance Officer at Italian insurer Generali and president of Insurance Europe.
German insurers have urged that existing restrictions be eased so they can linked site Canada Goose Outlet https://www.canadagooseoutlete.com invest uk canada goose more in renewable energy production. [ID: nL6N0CCEJJ].
