The European Commission plans to make it easier for banks to invest in resold debt, known as “securitization,” under draft proposals to revise rules for the practice seen by POLITICO.

The Commission will publish its revision of the EU’s securitization rules in a legislative package on June 17.

This will include changes to the Capital Requirements Regulation, the Securitization Regulation, and two secondary laws, the Liquidity Coverage Requirement Delegated Act and the Solvency II Delegated Act.

Under the draft plans here and here, the EU executive intends to change how capital requirements for banks investing in securitization are calculated to make them more “risk-sensitive” — in practice making it easier and more attractive for banks to engage in the practice. The plans also seek to loosen due diligence and reporting rules.

The revamp forms part of the EU’s push to deepen and integrate its capital markets to generate more capital to invest in businesses under its “savings and investments union” plan.