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Harmonization of European Covered Bonds

Summary

This proposal aims to create a unified European framework for covered bonds to improve investor protection and financial stability. It establishes common rules for issuing these bonds, the quality of assets used as collateral, and their public supervision.
10 18.12.2019
Other
finance
economy
public administration
business and competition

Key points

  • The directive establishes a standardized framework for the issuance and supervision of covered bonds across all EU Member States.
  • Investors are granted a dual recourse mechanism, meaning they have claims against both the issuing institution and the assets in the collateral pool.
  • The regulation ensures bankruptcy remoteness by requiring that assets in the cover pool are strictly segregated from the issuer's other holdings.
  • Only high-quality assets can be used as collateral to secure the bonds, with specific rules for different types of assets.
Documents (PDFs)
REPORT on the 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 Covered bonds and covered bond public supervision ***I
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