The European Banking Federation (EBF) in responding to the EBA Consultation on Securitisation Retention has said that securitisations should be regulated and safely backed with capital requirements while also making economic sense for banks. For this reason, it states that changes to the regulatory framework should be assessed not only on a risk basis but also by reference to the broader picture. The key question as to whether securitisations make economic sense under the proposed regulatory framework will remain unanswered until the Basel Committee Revision of the Securitisation Framework is considered. In particular, the EBF stated that in relation to the EBA's final text, the removal of the flexibility regarding the holder of the retention should be carefully assessed to consider the cases of other specific entities such as the definition of sponsor.