Summary
The proposal aims to amend EU regulations to strengthen the quality, transparency, and stability of covered bonds through stricter collateral and overcollateralisation rules. 10 18.12.2019
Other
economy
administrative law
financial institutions and credit
Key points
- Strengthening the eligibility requirements for assets used as collateral to ensure a higher quality cover pool.
- Establishing clear rules for loan-to-value limits that must be maintained throughout the entire duration of a loan.
- Introducing a mandatory minimum level of extra collateral to protect against the risk of an issuer becoming insolvent.
- Setting specific limits on the amount of exposure a bank can have to credit institutions with different levels of creditworthiness.
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