Prudential & capital markets

The prudential regulatory and supervisory requirements for leasing providers in Europe, as well as access to diversified funding through capital markets with the main focus on securitisation, are key advocacy areas for Leaseurope.

ECB building with Frankfurt skyline

The primary focus of our Prudential Supervision Committee is implementation of the finalisation of Basel III within Europe, ensuring that the low risk profile of leasing is well understood by the EU institutions and reflected in the upcoming CRR III. We also actively work within our Securitisation Working Group to guarantee access to European capital markets for leasing companies, enabling them to obtain competitive cost, secure and diversified funding.

Our team makes sure that the specifics of the leasing business model are taken into account at International and European level by bodies such as the Basel Committee on Banking Supervision (BCBS), the Financial Stability Board (FSB), the International Organization of Securities Commissions (IOSCO), the EU Commission (DG FISMA), the European Banking Authority (EBA), the European Central Bank (ECB) and the European Securities and Markets Authority (ESMA).

Key priorities

We work on a broad range of topics related to prudential supervision and capital markets at both the European and international level.

Implementation of Basel IV

Advocate for a specific capital treatment which takes into account the low risk nature of leasing when implementing Basel IV in Europe, as well as other topics related to the new CRR III like the SME supporting factor, operational risk, etc. See our dedicated webpage on Basel IV.

EBA technical standards

Engage with the EBA on development of technical standards, guidelines and reports on the calculation of capital requirements under the Standardised Approach and IRB Approaches for credit risk, on topics such as risk parameters, definition of default, permissions, appropriateness of risk weights or credit risk mitigation (CRM) techniques.

Capital Markets Union (CMU) - securitisation

Contribute to the further development of a safe securitisation market in Europe in addition to supporting the Capital Markets Union (CMU) initiative to reduce barriers to cross-border finance and diversify sources of finance utilised by lessors.

Supervision of credit institutions

Make sure that standards and supervisory practices resulting from the system of banking supervision in Europe fit lessors specialised business models.

ECB financing

Ensure ECB financing programmes such as the Targeted Longer-Term Refinancing Operations (TLTROs) or the asset purchase programmes are accessible to leasing providers.

Sustainable finance

Guarantee that the prudential framework in Europe facilitates leasing providers’ investment in green assets.