Today the European Commission published its Action Plan for a Capital Markets Union. Earlier this year, the Bank of England submitted a detailed response to the Commission’s consultation on CMU. We consider this Action Plan to be a further important step in moving closer to a single, integrated capital market in the EU, although we are yet to review the Commission’s detailed proposals. CMU requires carefully planned measures combining early quick wins to maintain momentum and sustained effort over a number of years, all in a very wide range of areas, and we therefore welcome the Commission’s step by step approach.
In the short term, the proposed Regulation on a European framework for simple, transparent and standardised securitisation, represents a significant milestone. Given the potential implications for financial stability at European and domestic level, we have worked with the European Central Bank to promote a sustainable model of securitisation and support the European Commission’s proposal on an EU framework for securitisation as part of the longer-term objective of growth in stable, market-based financing markets alongside bank lending.
We will remain fully engaged in the next steps of the process and the consideration and development of the Commission detailed proposal.