Assets held by Irish-resident SPEs valued at €859bn

Central Bank data reveal growth was driven in part of securitisation of bank loans

Assets held in these entities grew by €20 billion to €438 billion, Central Bank data show. Photograph:  Niall Carson/ PA Wire

Assets held in these entities grew by €20 billion to €438 billion, Central Bank data show. Photograph: Niall Carson/ PA Wire

 

Total assets held by Irish-resident Special Purpose Entities (SPEs) grew by almost €9 billion to €859 billion in the third quarter of 2020.

The growth was driven by what are known as securitisation SPEs, or loans repackaged by European banks for refinancing on international bond markets.

Assets held in these entities grew by €20 billion to €438 billion, Central Bank data show.

Italian bank sponsored entities issued €13.2 billion of new securities backed by corporate loans, while Greek bank sponsored entities issued €9.6 billion of securities backed by consumer loans.

This is part of an underlying trend of SPEs holding loans originated by euro area banks, which has seen such holdings rise to €83.9 billion since 2018, the regulator said.