Featured Product

    EC Welcomes Agreement on EU Framework for Covered Bonds

    February 26, 2019

    EC welcomed the political agreement reached by European Parliament and member states on new rules to promote the EU covered bonds market. An important element of Capital Markets Union, the new rules will provide a source of long-term financing for banks in support to the real economy.

    The agreed rules aim to foster the development of covered bonds across EU, particularly in those member states where such markets have not yet developed. They will create a harmonized EU framework without disrupting already established and well-functioning national markets. By putting in place a cost-effective and long-term funding source, these rules will help financial institutions, in particular banks, to finance the real economy across EU. These measures will also increase cross-border flows of capital and investments and promote harmonized prudential rules for those instruments, contributing to financial stability. Further technical work will follow this political agreement so that the European Parliament and the Council can formally adopt the final texts.

    As part of the Capital Markets Union action plan, EC is working to develop an integrated European framework for covered bonds, based on high-quality standards and best market practices. EC adopted the following proposal for an enabling EU framework on covered bonds on March 12, 2018 in the context of the broader Capital Markets Union package:

    • Directive providing a common definition of covered bonds, defining the structural features of the instrument and identifying the high-quality assets that can be considered eligible in the pool backing the debt obligations. The Directive also establishes a sound special public supervision for covered bonds and sets out the rules allowing the use of the "European Covered Bonds" label.
    • Regulation amending the Capital Requirements Regulation (CRR) with the aim of strengthening the conditions for granting preferential capital treatment to covered bonds by adding further requirements.

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, Covered Bonds, Capital Markets Union, CRR, European Parliament, EC

    Related Articles
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Technical Package on Reporting Framework 3.0

    EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.

    January 14, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets

    APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.

    January 14, 2021 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for Third Quarter of 2020

    EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.

    January 13, 2021 WebPage Regulatory News
    News

    ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro

    ECB concluded the public consultation on the introduction of a digital euro in EU.

    January 13, 2021 WebPage Regulatory News
    News

    ECB Finalizes Guide on Supervisory Approach to Bank Consolidation

    ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.

    January 12, 2021 WebPage Regulatory News
    News

    SRB Chair Outlines Work Priorities for 2021

    The SRB Chair Elke König published an article setting out work priorities for 2021.

    January 11, 2021 WebPage Regulatory News
    News

    FDIC Selects Companies to Compete in Final Phase of Tech Sprint

    FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.

    January 11, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6417