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

PRA Finalizes Reporting Amendments to Pillar 2 Liquidity Framework

PRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.

June 17, 2019 WebPage Regulatory News
News

IAIS Consults on Revisions to IAIS Supervisory Material

IAIS has launched a public consultation on revisions to the IAIS supervisory material.

June 14, 2019 WebPage Regulatory News
News

IMF Paper on Implementing Prudential Standards in Developing Economies

IMF published a working paper that provides practical guidance on how developing economies, including non-Basel Committee member countries, could incorporate international standards into their prudential framework.

June 14, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for June 2019

EBA published answers to five questions under the Single Rulebook question and answer (Q&A) updates for this week.

June 14, 2019 WebPage Regulatory News
News

FSB Releases Update on Meeting of Regional Consultative Group for Asia

FSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia.

June 14, 2019 WebPage Regulatory News
News

BoE, FCA, and MAS Announce Collaboration on Cyber Security

MAS and UK financial authorities (BoE and FCA) announced that they will work together to strengthen cyber security in their financial sectors.

June 13, 2019 WebPage Regulatory News
News

CBIRC Advisory Committee Holds Meeting, Discusses Regulatory Issues

The first meeting of the International Advisory Committee (IAC) of CBIRC was held in Shanghai from June 11 to 12, 2019.

June 13, 2019 WebPage Regulatory News
News

ECB and EIOPA Publish Common Minimum Standards for Data Revision in EU

ECB and EIOPA published the common minimum standards for supervisory and statistical reporting data by the undertakings in EU.

June 13, 2019 WebPage Regulatory News
News

IMF Reports on 2019 Article IV Consultation with Czech Republic

IMF published its staff report and selected issues report under the 2019 Article IV consultation with Czech Republic.

June 13, 2019 WebPage Regulatory News
News

APRA Response to Proposal on Revisions to Capital Framework for Banks

APRA published a paper in response to the first round of consultation on proposed changes to the capital framework for authorized deposit-taking institutions.

June 12, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3252