Asset Based Finance in Germany and TSI - the two terms are closely linked. True Sale International GmbH (TSI) emerged in 2004 from a banking initiative in Germany to promote the German securitisation market. Today, the topics of the TSI go far beyond this and cover broad areas of the asset-based finance market.
The original aim of the TSI was to enable banks in Germany to securitise their own loans and create a brand for German quality securitisations in accordance with German law and on the basis of a standardised procedure agreed with all market participants. The now well-established "DEUTSCHE VERBRIEFUNGSSTANDARD" sets standards in terms of transparency, investor information, exclusion of Originate to Distribute structures (OTD) and lending and processing standards. TSI shapes the German market for securitisations and assed-based finance with its events with more than 1.000 participants annually, its internet presence and its public appearance. TSI always looks beyond the end of its nose and covers also current market trends such as blockchain, fintech and digitilisation effects and changes in the financial and real economic framework conditions.
Securitisations have proven their worth in Germany and for the German economy securitisation is an important link to the capital market. The sales financing of the German automotive industry, the financing of asset leasing, the working capital financing of German industry and trade - securitisations are increasingly used in all areas. In recent years, between 30 and 40 billion euros in leasing, trade receivables and loans have been securitised on a regular basis.
- Favouring risk transfer – Increasing pressure on banks' earnings and capital resources will favour risk transfer and thus securitisation products
- Regulatory tailwind – Regulatory focus on CO2 reduction and infrastructure projects will promote project finance and asset based finance transactions
- Rising capital requirements speak in favour of ABS – Postponement of Basel III completion to 2021 and rise in risk costs will increase the need for securitisation through further growth in capital requirements
- Rising demand from captives – Automotive industry's growing financing requirements to fund its structural transition will make securitisation more attractive for captives
- New options through green finance – Green finance will create new options for securitisation such as ABS transactions backed by green financing, bundling green infrastructure loans in green CLOs, etc.
- Extension of STS to new asset classes – With the introduction of synthetic securitisation and the adoption of the SRT rulebook, STS securitisation regulation will create further options for bank loan securitisations that reduce pressure on equity
- Securitisation & NPL – Sale and securitisation of NPL loans will become more important in times of rising loan defaults
A. Public relations & further development of legal framework
- STS for synthetic ABS & SRT: Implementation and application of new regulations
- EBA/ESMA review of the STS regulations in early 2021 with new impetus
- High Level Forums on the CMU Action Plan: Implementation of securitisation issues
- Monitoring sustainable finance regulation in EU projects and its impact on securitisation
- Comprehensive review of the EU securitisation regulation as of 1 January 2022: How has securitisation proven itself in the crisis?
- Intensify dialogue with German industry and its associations (DIHK, BDI, VDA, VDT, BGA, Economic Council) on structural change in the financial and real economy and its effects on financing
- Continue dialogue with European (EBA, EIOPA, ESMA, ECB) and national supervisory authorities (Deutsche Bundesbank, Bafin) as well as with national and European parliamentarians
- Promoting and expanding capital market dialogue with the scientific community
B. Securitisation and STS as a quality product
- Consolidate STS's success as a European capital market segment across all asset classes and intensify contacts with regulators, originators, investors and other stakeholders
- Expand STS verification to synthetic securitisations
- Prepare green and sustainable finance criteria for verification
- Consolidate and maintain the "VERIFIED SVI" and "DEUTSCHER VERBRIEFUNGSSTANDARD" brands as quality brands
- Further develop the German securitisation framework and strengthen of the German securitisation platform
C. Partner network & events
- Position the TSI Congress in the market as a central event and platform in hybrid format for the long term
- Schedule events on new trends in financing structural change, green and sustainable finance, digitalisation and implications for securitisation transactions
- Further Europeanise TSI fields of action and partner network
- Win digitalisation drivers, FinTechs and MPL platforms for the TSI network
In its endeavours, TSI has the support of many partners – banks and law firms, rating agencies, auditing companies and service providers. It thus reflects the breadth of the German market.
TSI's Advisory Council plays an important role in the company's work. It comprises board members and CEOs of major German banks, the three large rating agencies, two auditing firms and representatives of the Federal Ministry of Finance and the Federal Ministry of Economics and Technology. It identifies and discusses key issues to be taken up by TSI. To the Advisory Council of TSI
TSI has the support of a broad, top quality network formed, at present, by 70 enterprises from the asset based finance industry. TSI Partners come from all sectors of the German securitisation market: banks, consultancy companies and service providers, law firms, rating agencies and professional associations. The unifying factors are competence and experience in the securitisation market and a common interest in further developing that market. TSI Partners derive particular benefit from TSI's lobbying and PR services. If you would like to find out more about the individual TSI Partners, their competence with regard to the securitisation and asset based finance market and their range of services, just click TSI Partners to access more detailed information.
Chair of the TSI shareholders' meeting:
Dr Matthias Hillmer, DZ BANK AG