NSSMC passes decision
National Commission on Securities and Stock Exchange has adopted the concept for creating mechanisms securing financial assets. The decision was taken at a regular meeting of the regulator, the press service of the agency informs.
According to the document’s authors, the key point that is spelt out in this concept is the creation of mechanisms safeguarding financial assets. In particular, the prediction mechanism in the domestic legislation of securitization (withdrawal of assets from the balance sheet/bank and refinancing through the issue of securities), enabling transfer of obligations into securities and division of assets of professional stock market participants and their clients.
By the way, in countries of the European Union and most other world nations in a dynamic financial market and the economy as a whole, the subjects of companies/of banks in order to attract new sources of funding and minimize the risks associated with their activities, have resorted to the use of in the practice of financial innovation, among which increasing attention is paid to the process of asset securitization. Securitisation is becoming a serious alternative to both traditional refinancing and classical methods of investing and risk management, as it offers a number of advantages.
