The Future of Securitizations: A Path Marked by Legal Challenges and Solutions?

Exploring the NPL’s Market and the Italian and European Regulatory Framework


Securitizations prove to be a crucial component in the contemporary financial landscape, yet behind their growing success lie complex issues and evolving legal solutions. In a comprehensive analysis, we delve into the market of Non-Performing Loans (NPL’s) and the Italian and European regulatory framework to fully grasp the challenges and opportunities that characterize this financial instrument.

A Glimpse into the NPL’s Market

The market for securitizations of Non-Performing Loans (NPL’s) shows frenetic activity, driven by a series of contrasting factors. On one hand, banks, concerned about a potential wave of deteriorated credits post-moratoriums, accelerate dispositions. On the other hand, investors maintain their steadfast determination, ready to pursue their investment plans. An interesting emergence of new investors, especially in the real estate sector, is observed, while credit recovery agencies explore new opportunities, diversifying their activities. In 2020 alone, nearly 500 securitization operations were recorded, with a total value exceeding 40 billion GBV, underscoring the significant impact of this instrument on the financial market.

The Regulatory Framework

Securitizations, complex financial operations, are regulated by a series of laws and regulations both at the national and European levels. In Italy, the main law is no. 130 of April 30, 1999, subsequently supplemented and amended by various ministerial decrees and budget laws. Recently, the European regulatory framework has assumed a prominent role with Regulation (EU) 2017/2402, known as the Securitisation Regulation, which harmonized securitization regulations across all Member States. This regulation has significantly contributed to promoting and expanding the European securitization market.


Securitizations represent an important resource for the financial sector, allowing institutions to manage risk and investors to diversify their portfolios. However, the legal and regulatory issues surrounding this instrument require constant attention and adaptation to the changing market conditions. Addressing these challenges with appropriate legal solutions is essential to ensure stability and confidence in the securitization market, ensuring that it continues to play its role as a catalyst for financial innovation.

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