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LONDON, June 11 (Reuters) - It is up to the market and not public authorities to take the leading role in reviving the asset-backed securities sector, Andreas Dombret, a member of the board of Germany's Bundesbank said on Wednesday.
The European Central Bank and Bank of England are trying to revive the market for asset-backed securities (ABS), which pool loans such as mortgages into bonds, to raise funds for investment in the economy.
The two central banks want more lenient regulatory treatment of top quality ABS to encourage more banks to generate the debt and investors to buy it.
The tarnished sector is a fraction of its size after the 2007-09 financial crisis, which began when securities based on sub-prime U.S. home loans became untradable.
"Clearly asset-backed securities as an asset class got into trouble during the crisis," Dombret told reporters during a visit to London, adding that the sector should not be stigmatised.
"Investors are interested in asset-backed securities and there is a good reason why it's important to revitalise the asset backed securities market," Dombret said.
"First and foremost it's a job for the industry itself. One should not always call for the public sector to be in the forefront when it should be in the interests of the market itself to revitalise that." (Reporting by Huw Jones; Editing by Catherine Evans and Toby Chopra)