• Current rules treat EU ABS inappropriately
  • EU should address inconsistencies in ABS treatment
  • Central bank ABS criteria start point for ABS eligibility
  • Banks are trying to deleverage and reduce risks and are reluctant to take on additional risks
  • Says we will see turning point in credit growth
  • Euro area health intertwined with SME state

Still some ways to go in nailing down the bells and whistles for the stress tests and the the ECB via Yves Mersch is giving another gee-up to Europe to get its act together. Mersch was speaking in London.