{"id":894,"date":"2024-12-04T09:53:26","date_gmt":"2024-12-04T09:53:26","guid":{"rendered":"https:\/\/iqeq.com\/ie\/insights\/what-makes-ireland-a-leading-centre-for-securitisation-and-spvs\/"},"modified":"2026-03-13T11:31:26","modified_gmt":"2026-03-13T11:31:26","slug":"what-makes-ireland-a-leading-centre-for-securitisation-and-spvs","status":"publish","type":"post","link":"https:\/\/iqeq.com\/ie\/insights\/what-makes-ireland-a-leading-centre-for-securitisation-and-spvs\/","title":{"rendered":"What Makes Ireland\u2019s Legal and Regulatory Regime a Leading Jurisdiction for Securitisation and SPVs in Europe?"},"content":{"rendered":"
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By Cian Leahy, Head of Debt and Capital Markets Accounting<\/em><\/p>\n

Amidst the rising tide of interest in securitisation<\/a> and special purpose vehicles (SPVs)<\/a> in Europe, Ireland has solidified its position as a global securitisation centre. Today, Ireland\u2019s strategic role in European capital formation is stronger than ever, thanks to its competitive regulatory framework, robust legal system and highly skilled workforce.<\/p>\n

In this article, we explore what makes Ireland such a compelling jurisdiction for securitisation and SPVs in Europe.<\/p>\n

What is securitisation and what are SPVs?<\/h2>\n

Securitisation is the process by which financial assets\u2014for example, loans, leases, receivables or mortgage-backed securities\u2014are pooled and repackaged into packages called securities for sale to investors.<\/p>\n

SPVs are legal entities separate from the organisation that created them, with a fully separate balance sheet to isolate financial risk. SPVs are often used as holding companies for securitised debt, helping to create liquidity and minimise risk.<\/p>\n

EU securitisation is on the rise<\/h2>\n

Policymakers in Europe recognise securitisation as a powerful lever<\/a> for mobilising private capital to help address strategic goals. Securitisation can contribute significantly to market development by freeing up balance sheets, allowing lenders to extend more capital to both corporate and private borrowers<\/a> while creating another asset class for investors.<\/p>\n

The European Commission\u2019s recent consultation<\/a> demonstrates a renewed commitment to the European securities market, which could have a transformative impact on the economy. The consultation aims to collect feedback on the current securitisation framework and identify areas for improvement, promoting a market that supports the EU economy without creating outsized risk.<\/p>\n

Despite the short consultation period, the European Commission is showing a willingness to scrutinise regulatory requirements<\/a> that have sometimes been burdensome (as with reporting requirements). These efforts are expected to bolster the securities market further over the coming years.<\/p>\n

Why Ireland is a leading EU jurisdiction for SPVs and securities<\/h2>\n

As of Q2 2024, there were nearly 3,500 active SPVs in Ireland<\/a> holding combined assets exceeding \u20ac1.1 trillion. This figure represents an all-time high, accounting for more than one-third of EU market securitisation SPVs. Central Bank of Ireland<\/a> figures also show that the market has increased consistently since EU regulators turned their attention to securitisation in 2019.<\/p>\n

Several factors have contributed to Ireland\u2019s role as a leader in the European securities market:<\/p>\n