August 22, 2018

ECB published its opinion (CON/2018/37) on the proposed directive and regulation on covered bonds. In its opinion, ECB welcomed the objectives of the proposed directive and regulation of promoting further integration of Union financial markets and deepening the Capital Markets Union. ECB is in favor of a developed, harmonized, high-quality, and transparent covered bond market in the Union and sees the proposed directive as an important step toward creating such a market.

ECB opines that it also sees merit in the proposed directive serving as a basis for new national legislation on covered bonds. However, the implementation of the proposed directive might not lead to full harmonization to the extent that member states will have flexibility in its implementation. The provided degree of flexibility should not endanger the objective of further convergence toward a common, high standard in all member states. The distinction made between different product regulations within the initiatives launched under the broader policy objectives of the Capital Markets Union allows for product-specific considerations. In this context, ECB supports the approach of the proposed directive, whereby European secured notes would be dealt with in a separate legislative proposal. Furthermore, the proposed directive and regulation are independent of the Eurosystem collateral framework and the covered bond purchase program, or CBPP3, of the Eurosystem, as these are monetary policy instruments that fall within the exclusive competence of the Eurosystem.

This opinion was issued in response to the requests received by ECB. On March 28, 2018 and April 13, 2018, ECB had received requests from the Council of the European Union and the European Parliament respectively for an opinion on:

  • A proposal for a directive of the European Parliament and of the Council on the issue of covered bonds and covered bond public supervision and amending Directive 2009/65/EC and Directive 2014/59/EU
  • A proposal for a regulation of the European Parliament and of the Council on amending the Capital Requirements Regulation or Regulation (EU) No 575/2013 regarding exposures in the form of covered bonds

 

Related Links

Keywords: Europe, EU, Banking, Securities, Covered Bonds, CON/2018/37, CRR, Capital Markets Union, ECB

Related Articles
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
News

US Agencies Delay Enforcing Volcker Rule Restrictions on Foreign Funds

US Agencies (FDIC, FED, and OCC) announced that they will not take action related to restrictions under the Volcker Rule for certain foreign funds for an additional two years.

July 17, 2019 WebPage Regulatory News
News

SRB Announces SRF Receives Cash Injection, Grows to EUR 33 billion

SRB announced that the Single Resolution Fund (SRF or the Fund) received a cash injection of EUR 7.8 billion from 3,186 institutions in 2019, bringing the total amount in the Fund to about EUR 33 billion.

July 17, 2019 WebPage Regulatory News
News

FASB to Propose to Delay CECL Compliance Deadline for Certain Entities

FASB published a summary of the tentative decisions taken at its Board meeting in July 2019.

July 17, 2019 WebPage Regulatory News
News

IMF Publishes Report on 2019 Article IV Consultation with Vietnam

IMF published its staff report in context of the 2019 Article IV consultation with Vietnam.

July 16, 2019 WebPage Regulatory News
News

European Parliament Elects Next President of European Commission

European Parliament elected Ursula von der Leyen from Germany as the first female President of the next European Commission for a five-year term from November 01, 2019.

July 16, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3476