European Banks Hinder Securitization Recovery

European banks are holding back growth of the securitization market by retaining most of the deals, reports Financial Times.

European banks are holding back growth of the securitization market by retaining most of the deals. Figures from the Association for Financial Markets in Europe reveal that 51.7% of the €2.08 trillion ($3.05 trillion) in outstanding structured-finance deals remained with originating institutions compared to just 7.1% three years ago. By retaining such a large percentage, banks are less equipped to issue fresh loans.

Click here to read the story from The Financial Times.