Loan Level Initiative
Active since: April 2011
Target: Every Central Bank within the European Union
Goal: Provide loan by loan data on Asset Backed Securities in order to improve market functioning and the transparency of securitisation structures.
Summary:
This Loan Level Initiative is merely a letter of intent in order for all European Central Banks to determine a set of data about retail mortgage backed securities and other asset backed securities.
These instruments in particular lay on the foundation of the credit crisis in 2008. And the expectation is that more transparent reporting on these will lead to a higher trust in the financial system as a whole.
One of the results of this initiative is the setup of the European DataWarehouse GmbH with its goal to ensure that ABS market data is openly accessible for market parties and that all transactions are recorded.
The initiative also lead to local regulations in order to collect the data.