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.
- Growing uncertainty in credit markets favours secured bonds and financing such as securitisations and asset-based finance transactions
- Growing interest rate uncertainty accommodates variable bond financing
- High pressure on banks and bank balance sheets favours placement of risks and securitisation products
- Basel III completion, also known as Basel IV, increases demand for securitisations due to further increase in capital requirements
- Real assets increasingly attractive for investors in an uncertain environment
- Rising financing requirements in the structural transformation of the automotive industry are making securitisation more attractive for captives
- Green finance will create new options for securitisations, such as ABS transactions backed by green finance, bundling green infrastructure loans in green CLOs, etc.
- With the introduction of synthetic securitisation, STS securitisation regulation will create further options for securitisations of bank loans that reduce pressure on capital ratios
- Emergence of new forms of financing for intangible assets
A. Further development of the legal framework and representation of interests in the real and financial economy
- Review the new securitisation regulation for ABCP and private securitisations and analysis of the impact of further regulatory developments on the real economy and use of securitisation
- Further development of STS and SRT accompanied by EBA/ESMA and EU
- Focus on Sustainable Finance regulation within the framework of EU projects
- Addressing the impact of digitalisation and blockchain applications on securitisation transactions and their settlement
- Closely follow Basel IV and its potential effects on bank-based SME financing with the associations of the real economy
- Address the linkages between structural change in the financial and real economy and its effects on financing and the securitisation market
- Expand collaboration with FinTechs and MPL platforms
B. Positioning STS Verification, DEUTSCHER VERBRIEFUNGSSTANDARD and TSI securitisation platform
- Make STS a success as a European capital market segment across all asset classes
- Intensify contacts with supervisors, originators, investors and other stakeholders and further expand TSI’s role as linkage as part of the implementation of STS
- Further cultivate the ’DEUTSCHER VERBRIEFUNGSSTANDARD’ brand as a quality brand in the STS world
- Advance the further development of the German securitisation framework and promote the German securitisation platform
C. Networking & public relations
- Continue networking with German industry and its associations (DIHK, BDI, VDA, VDT, BGA) and expanding network to European associations
- Promote and expand capital market dialogue with academia
- Add to the agenda events on topics relating to new trends in financing structural change, sustainable finance, mobility concepts and digitalisation, and implications for securitisation transactions
- Maintain dialogue with European (EBA, EIOPA, ESMA, ECB) and national supervisory authorities (Deutsche Bundesbank, Bafin)
- Further develop the dialogue with the regulator, i.e. BMF, members of the Finance Committee, DG FISMA at EU level and European parliamentarians
- Win digitilisation drivers, FinTechs and MPL platforms for the TSI network
- Further Europeanise TSI's fields of action and partner 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