EU Green Securitization Unlikely to See Beneficial Capital Regime Soon

EU securitization regulation unlikely to incorporate beneficial bank capital treatment for green securitization holdings until the European Banking Authority (EBA) has completed analysis of framework in June 2025. This timetable may be accelerated under the European Green Deal. However, there is no guarantee the Parliamentarians’ request will make it into final amendments and the EBA’s desired sequencing suggests beneficial capital treatment regime for green products is unlikely in the short term.