De-risking and sources of finance : the EU case

Abstract

This thesis focuses on mitigating the effects caused by the 2008 financial crisis that fermented the creation of the finance gap and this may come in scope once again following the global health crisis. Individuals and SMEs requiring funding will find it more easily available should lenders be able to de-risk their position and hence mitigate their liquidity and cash flow risks. The advent of alternative finance in recent years has brought with it a source of liquidity through the power of the crowd and how this can be maximised through the use of securitisation. Securitisation has been around for a long time and since 2013 this has also been used to de-risk alternative finance and loans generated on a peer to peer basis. The thesis delves into the different risks faced by lenders that offer loans via peer to peer lending platforms and the role that securitisation may play in addressing such risks. The discussion within the thesis delves further into how securitisation could be regulated and what benefits will be derived from the regulation of securitisation of peer to peer lending. The focus is placed on a number of themes elicited from the regulatory analysis that are the foundation for any regulatory framework for the regulation of securitisation with peer to peer loans as the securitisation assets.