1. Working Party on Financial Statistics
OECD
Working Party on Financial Statistics
29 November - 1 December 2010
Summary record of the Workshop on Securitisation, held in Madrid on May 2010
Omar Birouk

2. Outlines The reasons for holding the Workshop on securitisation.
Overview of the securitisation process
The role of statisticians in the securitisation process
Thoughts about securitisation

3. 1. The reasons of holding the Workshop on securitisation.
Securitisation has become a major phenomenon in the way of financing economic activities in many countries and areas
There is a need to better understand the features of the securitisation process due to its :
Growing impact on financial credit and monetary analysis
Important role in the transfer of risk
Effects on financial intermediation and financial stability
To better assess securitisation activities across the OECD countries, the collected information must be comparable. This calls for :
Common definition of instruments
Dissemination of common templates

4. 2. Overview of the securitisation process (1).
The securitisation process was described from the standpoint of many stakeholders including analysts, supervisors and investors.
It has been illustrated with respect to the pre-crisis period…
The driving factors of the boom in securitisation ( the pre-crisis period August 2007) were pointed out from macro-financial perspective:
Global imbalances caused a global “savings glut”
Emerging countries registered since the early 2000s a trade surplus
While developed countries saw their deficit widening
Low rates facilitated the expansion of credit
Some key figures from the spanish market illustrated the expansion of the securitisation market.

5. 2. Overview on the securitisation process (2)
…analysed with regard to the current economic situation
The factors for the collapse in the ABS market were:
Lack of investor confidence
The exit of SIVs and ABCP conduits
Uncertainty regarding credit quality
Some key aspects of the securitisation process were highlighted:
Distinction of ABS market / Covered bond market
Financing of Small and medium enterprises
Accounting treatment of securitisation

6. 2. Overview on the securitisation process (3)
…and discussed to restore the ABS market for the future
There is some initiatives that were pointed out :
The enhancement of the information in the ABS market
The minimum retention rules supported by G20
But we have to weight the pros and cons of enhancing information in the ABS market by doing a good balance between disclosure and efficiency
The real need is to have a better information to enhance four aspects of data disclosure : transparency, accessibility, comparability and granularity

7. 3 The role of the stasticians in the secutitisation process (1)
Trying to delimit the securitisation phenomenon
The cases exposed by the Netherlands and Ireland highlighted the difficulty
of :
Having thorough information on securitisation
Assessing the complexity of some securitisation transactions
So an effort should be made to give a general framework capable to encompass the securitisation process
The handbook of securities is a step towards this general framework but its definition of securitisation is not consistent with the ECB’s one.
A common definition of securitisation calls for a further work

8. 3 The role of the stasticians in the process (2)
Trying to collect and integrate data
The collection of data on securitisation is done in different ways according to the domestic statistical framework :
Through the new ECB statistical framework for the euro area countries
Through central securities depository for some countries as Japan or a survey as in Australia
Through new types of securitisation transactions such as securitisation of insurance risk
The integration of data on securitisation into the financial accounts remains difficult for non-standard transactions and needs a consultation among countries.

9. 4 Thoughts about securitisation
At the roundtable, it was stressed out :
The need to harmonize terms and to have common methodology and uniform dissemination of statistics with the active participation of international organisations (IOs)
The need to exchange information between countries directly or through IOs
The importance for the future of securitisation to enhance :
Transparency
Harmonisation
Cooperation

10. Thank you for your attention