Capital Markets Union and the threat of regulatory competition





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STS regulation has been criticized by industry as overly complex and too ambiguous to incite a large scale revival of securitization. On the other hand, NGOs as well as academics have criticized the initiative for fixing the wrong problem (supply rather than demand of credit), and for reviving a trend towards financialisation, which is likely to lead to future asset-bubbles in sectors such as real estate. This contribution will take up a different historically comparative angle and focuses on the current governance mechanisms regarding the enforcement of STS criteria.

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