Key Takeaways: Synthetic Securitisation in European Banking Core Mechanism: Synthetic securitisation enables banks to transfer credit risk through derivatives while maintaining asset ownership and customer relationships. Regulatory Framework: Transactions are governed by Capital Requirements Regulation (CRR), requiring significant risk transfer (SRT) and transparent documentation. Technological Transformation: Digital platforms and blockchain are revolutionizing transaction efficiency, monitoring, and reporting processes. Risk Management Advantage: Banks can optimize capital usage, reduce portfolio concentration risk, and maintain strategic lending relationships. Market Evolution: The market is trending towards increased standardization, ESG focus, and broader investor participation. Future Outlook: Continued growth is expected through technological innovation, regulatory adaptation, and enhanced transparency. Table of Contents Understanding the Fundamentals of Synthetic Securitisation How Does Synthetic Risk Transfer Actually Work? Evolution of Synthetic Structures in European Banking Technology Innovations Reshaping Synthetic Securitisation Analyzing Recent European Synthetic Securitisation Deals Risk Management Benefits and Considerations Regulatory Compliance and Best Practices Future Outlook for Synthetic Securitisation Understanding the Fundamentals of Synthetic Securitisation Synthetic securitisation transactions have become increasingly important in European banking risk management, offering innovative ways to transfer credit risk without selling the underlying assets. Unlike traditional securitisation, synthetic structures use credit derivatives to transfer the economic risk while maintaining customer relationships … Continue reading Synthetic Securitisation: Managing Risk in a Changing Landscape