The recovery of the (SME-) securitization market is also one of the focus areas of the Capital Markets Union (CMU) and the European Commission intends to revive securitization with the objective “to ensure that it can act."

This article summarizes the latest situation and latest developments of the SME securitisation (SMESec) market in Europe.  Given that SMEs have almost no direct access to the capital markets and that, in particular, in Europe they heavily rely on bank lending, a functioning securitization market can transform illiquid loans to SMEs into an asset class with adequate market liquidity.