European Commission proposal for covered bonds

Published: 13 March 2018

The European Commission is proposing EU rules that will establish common definitions and standards for covered bonds and address prudential concerns.

The proposed Directive i) provides a common definition of covered bonds, which will represent a consistent reference for prudential regulation purposes; ii) defines the structural features of the instrument; iii) defines the tasks and responsibilities for the supervision of covered bonds; and iv) sets out the rules allowing the use of the "European Covered Bonds" label. The proposed Regulation also amends the Capital Requirements Regulation (CRR) with the aim of strengthening the conditions for granting preferential capital treatment by adding further requirements. 

For further information, please contact Marie-Adelaide de Nicolay.