EBA · 2021_6096 Rejected question

Assets encumbered for a residual maturity of one year or more in a cover pool funded by Covered bonds for NSFR purposes

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
428ag, para. h
Topic
Liquidity risk
Submitted by
Credit institution
Submitted
2021-07-16
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Question

Does the 85 % required stable funding factor apply to assets encumbered for a residual maturity of one year or more in a cover pool funded by Covered bonds issued directly in the market, as well as to the assets underlying self-issued Covered bonds used as collateral for long term ECB funding or SFT with the market?

Background

With reference to the Article 428ag (h) of Regulation EU 2019/876, in the context of Covered bonds that comply with Article 52(4) of Directive 2009/65/EC or requirements as set out in Article 129(4) or (5) of the Regulation, the 85% of RSF factor could be applied to all assets encumbered for a residual maturity of over one year in a cover pool funded by covered bonds issued for funding directly to investors in the market, as well as also to those assets underlying the retained Covered bonds that are used as guarantee for long term ECB funding or Repo transactions.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2021_6096

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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