18 April 2019
Brussels, 18 April 2019 – For immediate release
Following the trilogue negotiations with the Council and the European Commission on the proposal for a Covered Bond Legislative Package, the European Parliament’s Plenary adopted today in Strasbourg the text which had been approved by the Council (Coreper) on 20 March and then by the European Parliament’s Economic and Monetary Affairs (ECON) Committee on 1 April 2019.
In this context, the European Mortgage Federation – European Covered Bond Council (EMF-ECBC) welcomes the adoption of the Covered Bond Legislative Package, which aims at completing the Capital Markets Union (CMU) in Europe.
The Package provides a basis for enhanced harmonisation of the European covered bond market, in line with the objectives of the CMU, reinforcing a European common qualitative benchmark for international investors and respecting well-functioning traditional markets. It moreover paves the way for the smooth introduction of this asset class in newer and emerging covered bond markets in the Union, such as those in the Baltic regions, Poland, Slovakia and Romania, and will also serve as an important legislative benchmark on a global level for countries such as Australia, Brazil, Canada, Japan and Singapore.
This significant achievement comes just a few days ahead of the 29th ECBC Plenary meeting in Riga, Latvia on 24 April 2019 where the entire community will gather together to celebrate this historic moment for the asset class and discuss how to align market best practices to the new legislative framework.
Commenting on the adoption of the Legislative Package, Luca Bertalot, EMF-ECBC Secretary General stated:
“We are extremely pleased with today’s outcome which is the result of a long and intense period of discussion and negotiation between policymakers, during which the EMF-ECBC played a pivotal role in facilitating constructive dialogue between the industry and the EU Institutions. The agreement sealed today delivers a common European-wide regulatory framework for covered bonds which not only enhances harmonisation of best practice but also contributes to the further development of covered bonds in the EU and beyond, acting as a lighthouse for the global funding of the real economy and further reducing market fragmentation. The industry is very proud of this accomplishment which is the result of a combined effort of all market stakeholders to secure a global qualitative benchmark which responds to the needs of the market. The EMF – ECBC will now follow closely national implementation of the Legislative Package and, as always, stands ready to assist the development of the asset class in new jurisdictions, such as in the Baltic region, and other global markets”.
Contact:
Luca Bertalot
Secretary General
Tel: +32 2 285 40 35
Established in 1967, the European Mortgage Federation (EMF) is the voice of the European mortgage industry on the retail side of the business, representing the interests of mortgage lenders at European level.
