Covered bonds and covered bond public supervision

 

SUMMARY OF:

Directive (EU) 2019/2162 on the issue of covered bonds and covered bond public supervision

Regulation (EU) 2019/2160 amending Regulation (EU) No 575/2013 as regards exposures in the form of covered bonds

WHAT IS THE AIM OF THE DIRECTIVE AND OF THE REGULATION?

KEY POINTS

Directive (EU) 2019/2162

Scope

The directive covers the following:

Regulation (EU) 2019/2160

FROM WHEN DO THE DIRECTIVE AND REGULATION APPLY?

BACKGROUND

KEY TERMS

Covered bond: a debt obligation issued by a credit institution secured by assets (usually a pool of mortgage loans or credits to the public sector, but also other high-quality cover assets ensuring that the credit institution issuing the covered bonds has a claim for payment and are secured by collateral assets subject to strictly defined requirements) to which their investors have direct recourse.
Credit institution: an undertaking which takes deposits or other repayable funds from the public in order to grant credit.
Over-collateralisation: the practice or process of placing an asset as collateral on a loan where the value of the asset exceeds the value of the loan.
Substitute assets: assets held in addition to primary assets, typically constituting derivatives and assets held for liquidity purposes.

MAIN DOCUMENTS

Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU (OJ L 328, 18.12.2019, pp. 29-57)

Regulation (EU) 2019/2160 of the European Parliament and of the Council of 27 November 2019 amending Regulation (EU) No 575/2013 as regards exposures in the form of covered bonds (OJ L 328, 18.12.2019, pp. 1-6)

RELATED DOCUMENTS

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Action Plan on Building a Capital Markets Union (COM(2015) 468 final, 30.9.2015)

Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, pp. 190-348)

Successive amendments to Directive 2014/59/EU have been incorporated into the original text. This consolidated version is of documentary value only.

Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, pp. 1-337)

See consolidated version.

Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, pp. 32-96)

See consolidated version.

last update 04.08.2020