EBA · 2015_1767 Rejected question

Covered bonds issued by non-EEA member states

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
129, para. 1
Topic
Securitisation and Covered Bonds
Submitted by
Credit institution
Submitted
2015-01-29
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Question

In the context of two identical covered bonds, the first issued by a French bank and qualifying for covered bond status, and the second issued by a Canadian bank identical in all other respects, can the latter one be treated as a covered bond under the third country equivalence decision or can covered bonds only be issued by credit institutions having their registered office located in a Member State?

Background

Following the Implementing Decision of the European Commission on third country equivalence for the purposes of the treatment of exposures in CRR, we would like to get clarity on the treatment on covered bonds. The definition for covered bonds references Article 52(4) of Directive 2009/65/EC, which limits eligibility for the preferential treatment set out in paragraphs 4 and 5 of Article 129 of the CRR, to recognition of bonds issued by credit institutions having their registered office located in a Member State.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2015_1767

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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