The European securitization market has been stagnating for years. The securitization reform is set to breathe new life into it. It is hoped that if banks can securitize loans more easily and cheaply, they will grant more loans to the real economy and thus boost investment. The reform is one of the few concrete reform steps of the Savings and Investment Union on which most Member States agree. Critics of the reform do not believe it will have a major effect on the real economy. Instead, they fear that simplified securitization will lead to banks weakening their capital position in order to achieve higher returns on equity at the expense of financial stability.