ECB, BoE want more lenient rules on securitized loans

The European Central Bank and the Bank of England on Friday called for easier rules regarding certain securities so as to get credit flowing again in the eurozone economy. In a joint declaration issued at the spring meeting of the International Monetary Fund, the ECB and the BoE complained that the market for securitised loans - widely blamed for causing the financial crisis in single currency area - was impaired and shrinking.
"This is a concern because securitisation, if appropriately structured and regulated, can complement other long-term wholesale funding sources for the real economy, including for small and medium-sized enterprises (SMEs)," the two central banks said. Credit in the euro area has practically dried up for months now, weighing on the very tepid economic recovery in the region.