…protecting € 21 bn of credit risk on € 260 bn of bank loans.

The IACPM released the results of its annual Global SRT Bank Survey on risk sharing transactions executed by banks through synthetic on balance-sheet securitizations. The Survey covers SRT transactions executed between 2016 and 2024.

The Survey shows that in 2024, transactions increased by nearly one third, protecting € 21 billion of credit risk on € 260 billion of loans. The continuing growth in SRT transactions highlights their effectiveness as a tool for banks to manage credit risk and free up capital in support of additional lending.

The European Union continued to dominate the SRT market, while North American activity remained relatively stable in 2024. Global development banks are also starting to use SRTs more frequently to partner with private investors and increase their lending capacity.

Specialized investors participate in the structuring of private SRT transactions after performing comprehensive due diligence on each bank’s business and risk management practices on the asset classes they want to invest in globally. Multiline non-life insurers are interested in providing protection on SRTs for diversification into a broader range of bank loans.

Please click here to access a summary article on survey results.
Please click here to access select high-level results from IACPM’s latest annual Global SRT Bank Survey
Please click here for full Press Release.