Q&A: Benoît Coeuré, ECB, on securitisation and clearing risks
A reboot of the securitisation market would make a difference to Europe's economy – but it will only make a big difference if states take the tough decision to provide some kind of credit enhancement, says Benoît Coeuré, executive board member at the ECB. By Cécile Sourbes.
Europe's taxpayers and politicians may not like the idea, says Benoît Coeuré, a member of the executive board at the European Central Bank (ECB), but if they want asset-backed securitisation (ABS) to really boost the economy, then the state will need to provide some kind of guarantee to the market.
"This is obviously not a decision that falls under the remit of the ECB, because it is not our money and, at the end of the day, it's shifting risk to public balance sheets, so it has to be a
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