The securitisation framework review reached a political agreement on 21 October 2026, when the European Parliament and the Council announced a deal on the main elements of the reform. The Commission proposed the review in June 2025, and the agreement now moves towards formal adoption. This analysis explains what changes for bank capital, who supervises the simple, transparent and standardised (STS) label, and what remains unpublished.
What the securitisation framework review changes
The package has three parts. Two follow the ordinary legislative procedure: an amendment to the Securitisation Regulation and an amendment to the Capital Requirements Regulation (CRR), which sets capital for securitisation exposures. The third is a Commission Delegated Regulation amending the rules on which assets count towards a bank’s liquidity buffer. Co-legislators get a two-month scrutiny period for that act after formal adoption.
The text had not been published when this note was written, so the details below rest on press statements about the deal.
Capital rules become more risk-sensitive
The agreement recalibrates bank capital for securitisations on a risk-sensitive basis. Low-risk deals attract lower requirements. Parliament’s proposed 5 percent risk-weight floor for safer asset classes is part of the deal, which keeps a minimum charge in place even for the best-performing pools.
This is the heart of the securitisation framework review. Banks use securitisation to move loans off their balance sheets and free capital for new lending. If the capital charge for safe tranches falls, that recycling becomes cheaper. The floor limits the risk that capital relief goes too far.
New resilient category and STS supervision
The deal adds a new “resilient” category and improves the STS label. It also changes who checks compliance. The European Securities and Markets Authority (ESMA) becomes the supervisor of entities that verify STS compliance. The European Banking Authority (EBA) gets a “comply or explain” mechanism and leads a Joint Committee that publishes an annual STS compliance report.
Supervision of the verifiers matters because investors rely on the STS label as a signal of quality. A label that investors trust can widen the buyer base, while a weakly policed label can erode confidence in the whole market.
Transparency, investors and cross-border deals
The agreement reduces administrative burdens and raises investment limits for UCITS funds. It defines public and private securitisations, with full transparency required for public ones, and gives collateralised loan obligations (CLOs) a distinct reporting template.
Targeted STS changes cover three areas: cross-border integration, insurer participation in synthetic securitisation, and pre-operational project financing. Together these changes in the securitisation framework review widen who can buy securitised risk and which assets can be packaged, which fits the wider aim of deepening European capital markets.
What happens next
The Council and Parliament must formally adopt the texts, after which they are signed and published in the Official Journal. The amendments enter into force 20 days after publication. The delegated act then faces its two-month scrutiny period.
The final text will decide how much of the securitisation framework review reaches banks in practice. Readers should watch the exact risk-weight figures, the definition of the resilient category and the timetable for ESMA’s new role, because those details will determine whether the reform lowers costs as intended.
