Business case europejskich obligacji zabezpieczonych

Andrzej Dżuryk

doi:10.26354/bb.6.3.88.2022

Published : 2022-10-07

Vol. 88 No. 3 (2022)

The business case of European Secured Notes

Andrzej Dżuryk

https://orcid.org/0000-0002-4055-7773

DOI: https://doi.org/10.26354/bb.6.3.88.2022

Abstract

The aim of this article is to try to verify the business case for ESN as a new capital market instrument. The hypothesis adopted by the author states that there is a business case for ESN as an instrument used to fund banking activities in the field of lending to small and medium-sized enterprises. The concept of a new dual- recourse capital instrument for the stable, long-term funding of lending to small and medium-sized enterprises is high on the EU’s agenda. Modeled on the structure that contributed to the success of covered bonds, they address the financial needs of a key segment of the European economy, particularly affected by the Covid-19 pandemic. At the same time, they meet the needs of investors looking for profitable instruments with a low level of risk. By ensuring the necessary increase in transparency and standardization of ESG data for small and medium-sized enterprises, ESNs can be an important tool in rebuilding a sustainable, post-pandemic European economy, especially after the end of government support programs and quantitative easing of central banks. The development of the new instrument would be supported by the preferential regulatory treatment known from covered bonds as well as the capital relief of bank issuers based on a securitization mechanism. The author’s analysis across the main stakeholders: issuers, investors, the real sector as well as policy makers and market regulators, leads to the conclusion that the ESN market has significant potential and its construction has a well-established business case that can count on political support from the EU.