Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

13 September 2010

Trade federations call for greater recognition of covered bonds in Basel III


Default: Change to:


The CEA, together with five other trade federations, calls for covered bonds to be given greater recognition in the Basel Committee’s proposed capital and liquidity regimes to avoid a negative impact on the European economy compared to other major economic zones.


The smooth functioning of the covered bond market is obviously essential for market participants but there has also been an increasing recognition of its importance from policy makers and regulators. Above and beyond the benefits of close public supervision, covered bonds encourage prudent behaviour among banks and provide access to long term funding, thus enabling a better management of the maturity mismatch between assets and liabilities as well as mitigating liquidity risk.
Therefore, the assembled trade associations requested that a greater consideration is given to these elements in the finalisation of the proposals for a new capital and liquidity framework to be endorsed by G20 Leaders as a commensurate response to improving the resilience of the financial sector and ensure that this is applied consistently in the context of all financial services regulatory and supervisory frameworks.
 


© CEA - Comité Européen des Assurances


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment