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The European Federation of Building Societies harshly criticised the Commission study on regulation of 'non-credit' institutions in mortgage markets. “Non-banks” played a disreputable role in the current development of the subprime-market, Managing Director Andreas Zehnder said. Deliberations on a European Passport for these kinds of companies are absolutely not comprehensible.
The EFBS calls the study to be "a complete waste of taxpayer´s money". The Commission proposes billions for recovery action plans and tries to improve the deposit guarantee schemes while again sympathizing with a system that led to the collapse of the financial markets, EFBS said.
Even the consultants themselves recognize in their study that most of the surveyed non-deposit lenders in the United Kingdom and Ireland either ceased to exist or are not able to provide new mortgage loans, EFBS states.
“The Commission´s use of taxpayer´s money to sponsor expensive surveys on a dying market should actually be a case for the Court of Auditors”, Zehender said.