Solvency Capital Requirement (SCR)

Question

Article 180(1) of the 2015/35 Solvency II Delegated Regulation provides an adjusted stress factor for covered bonds. Our inquiry is as follows: Does the definition of covered bonds, as referenced here, exclusively encompass covered bonds issued by a credit institution with its central office located within the EU?

European Insurance and Occupational Pensions Authority · Accepted Answer

The definition of covered bonds refers to Article 52(4) of Directive 2009/65/EC, which subsequently refers to Article 3(1) of Directive (EU) 2019/2162. According to Article 3(1) of Directive (EU) 2019/2162, a covered bond is "a debt obligation issued by a credit institution in accordance with the provisions of national law transposing the mandatory requirements of this Directive…" Only credit institutions in a member state of the EEA are capable of meeting this requirement. ESMA publish a list of issuers that currently meet the requirements of Article 52(4) of Directive 2009/65/EC. https://www.esma.europa.eu/sites/default/files/library/categories_of_covered_bonds_and_issuers_of_covered_bonds.pdf

Solvency Capital Requirement (SCR)

Question

Answer

Similar Q&As

More Q&As on this topic