17 September 2018
Brussels, 17 September 2018 – For immediate release
The European Mortgage Federation – European Covered Bond Council (EMF-ECBC) would like to take this opportunity to provide an update to its press release published on 4 September 2018, on market feedback on the draft Report prepared by MEP Bernd Lucke for the European Parliament’s Economic & Monetary Affairs Committee (ECON) on the European Commission’s proposals for a Covered Bond Legislative Framework.
During its meeting in Munich on 11 September 2018, the ECBC Steering Committee analysed the feedback received on MEP Lucke’s draft Report and discussed the potential implications for the current, well-functioning markets. Indeed, we strongly believe that a European covered bond legislative framework should reinforce quality, add value for issuers and investors, and safeguard the macroprudential characteristics of covered bonds as a long-term funding instrument for the real economy and a crisis management tool in stress scenarios. To this end, the Steering Committee identified the following common areas, which are deemed to be the most critically important to the covered bond industry:
The ECBC invites the EU Institutions to carefully consider these common areas of concern.
Commenting on this development, Luca Bertalot, EMF-ECBC Secretary General stated:
“On the occasion of its Plenary meeting in Munich and after intensive debate, the Covered Bond Industry reached an important consensus on four key areas of concern with the potential to severely impact on the quality of the asset class moving forward. The Industry stands ready to act as a catalyst to further improve the harmonisation of best practices and to, in turn, facilitate the implementation of the Directive by Member States in due course to further reduce market fragmentation”.
The market feedback collected by the EMF-ECBC can be downloaded here.
The European Commission’s Proposals for a Directive and a Regulation amending the Capital Requirements Regulation (CRR) can be downloaded here.
The draft ECON Reports prepared by MEP Lucke on the European Commission’s Proposals can be downloaded here (Directive) and here (Regulation).
Tel: +32 2 285 40 35