| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2018) 93 final |
| Publication Date | 12/03/2018 |
| Content Type | Policy-making |
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Further information: This enabling framework for covered bonds consists of a Directive and a Regulation - the two instruments should be seen as a single package. + Proposal for a Directive on the issue of covered bonds and covered bond public supervision [COM(2018)94] The proposed Regulation mainly amends Article 129 of Regulation (EU) No 575/2013 (Capital Requirements Regulation). The amendments build on the existing prudential treatment but add requirements on minimum overcollateralisation and substitution assets. They would strengthen the requirements for covered bonds being granted preferential capital treatment. Background information: Covered bonds are debt obligations issued by credit institutions and secured against a ring-fenced pool of assets to which bondholders have direct recourse as preferred creditors. At the same time, bondholders remain entitled to claim against the issuing entity as ordinary creditors. This double claim against the cover pool and the issuer is referred to as the ‘dual recourse’ mechanism. The enabling framework for covered bonds is featured in the Commission Work Programme for 2018. In the letter of intent following up his latest State of the Union speech, the President of the European Commission confirmed that an enabling framework for covered bonds should be launched or completed by end-2018 to ensure a deeper and fairer internal market. The Commission confirmed this intention in the Mid-Term Review of the CMU Action Plan of June 2017. The framework for covered bonds was released within a package of measures contributing for the completion of the Capital Markets Union (CMU). + Communication on completing the Capital Markets Union by 2019 [COM(2018)114] The European Commission adopted on 12 March 2018 a proposal for a Regulation amending Regulation (EU) No 575/2013, the Capital Requirements Regulation (CRR). |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:093:FIN |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
