In an article published on January 20th, l’AGEFI quotes the governor of the Banque de France, Christian Noyer, supporting the growth of a French RMBS market. The rationale put forward by Mr Noyer is that only securitisation can remove mortgages (and other assets) from the balance sheet of French banks. In this, he is reflecting a position of which PCS has been supportive throughout its existence: namely that if the threat to the European economic recovery is bank deleveraging and if bank deleveraging is the result of capital constaints and concerns, then only funding solutions that have a capital component can assist. Securitisation is the one funding channel that can address capital. This reasoning is put forward very explicitly by the Banque de France. The article may be found here. (It is behind a pay wall but a free subscription is available).