Instruction No. 2022-I-03 of March 9, 2022, on the coverage ratio of land credit societies and housing finance companies and regulatory statements

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2022-I-03 On the coverage ratio of land credit societies and housing finance companies and regulatory statements mentioned in Article 10 of CRBF Regulation No. 99-10 of July 9, 1999 Amended by Instruction No. 2025-I-05 of May 22, 2025

The Prudential Control and Resolution Authority, Having regard to the Monetary and Financial Code, in particular Articles L. 612-2 and L. 612-24 of the Monetary and Financial Code; Having regard to the Regulation of the Banking and Financial Regulation Committee No. 99-10 of July 9, 1999, as amended, relating to land credit societies and housing finance companies; Having regard to Instruction No. 2016-I-09 of March 11, 2016, on the coverage ratio of land credit societies and housing finance companies; Having regard to Instruction No. 2014-I-17 of December 8, 2014, on the regulatory statements mentioned in Article 10 of CRBF Regulation No. 99-10 of July 9, 1999; Having regard to Instruction No. 2021-I-03 of March 11, 2021, on the implementation of unified reporting for banks and similar institutions; Having regard to the opinion of the Prudential Affairs Consultative Commission of February 25, 2022,

DECIDES

Article 1: The establishments subject to this instruction are credit institutions authorized as land credit societies, within the meaning of Article L. 513-2 of the Monetary and Financial Code, or housing finance companies, within the meaning of Article L. 513-28 of the same Code.

Article 2: Land credit societies and housing finance companies shall communicate to the Prudential Control and Resolution Authority:

a) The "Coverage Ratio Calculation and Limit Control Statement" appearing in Annex 1 of this instruction, containing information on:

• The calculation of the coverage ratio mentioned in Article L. 513-12 of the Monetary and Financial Code;
• Compliance with limits relating to asset composition;
• The calculation of amounts eligible for refinancing through privileged resources. This statement must include the information listed and described in Annex 2 and Annex 3 of this instruction.

b) Statements containing information on:

• The elements for calculating the coverage of their cash flow needs mentioned in Article R. 513-7 of the Monetary and Financial Code, as described in Annexes 4 and 5 of this instruction;
• The difference in average life between assets and liabilities considered in Article 12 of Regulation No. 99-10 of July 9, 1999, as described in Annexes 6 and 7 of this instruction;
• The estimate mentioned in Article 12 of Regulation No. 99-10 of July 9, 1999, of privileged resources up to their maturity with regard to the available pool of eligible assets and forecasts of new production under conservative assumptions, as well as their methods of preparation, as described in Annexes 8 and 9 of this instruction;
• The information mentioned in Articles 12 bis and 12 ter of Regulation No. 99-10 of July 9, 1999, on financial derivative instruments and specified in Annex 10 of this instruction;

The statements mentioned in a) and b) of this Article are prepared four times a year based on figures finalized on March 31, June 30, September 30, and December 31. These statements must be transmitted even in the event of insolvency or resolution and may be subject to more frequent ad hoc requests.

Land credit societies and housing finance companies wishing to benefit from the "European High-Quality Covered Bond" label must also send the statement appearing in Annex 13, allowing the granting and control of this label by the Prudential Control and Resolution Authority. This statement contains information on compliance with the eligibility criteria of Article 129 of Regulation (EU) No 575/2013 of June 26, 2013, as amended by Regulation (EU) No 2019/2160.

These statements are communicated to the Prudential Control and Resolution Authority within three months following the date of finalization, in XML-XBRL format, according to modalities defined by the Prudential Control and Resolution Authority, and must be communicated under the conditions set by the Prudential Control and Resolution Authority's Instruction No. 2025-I-05.

Only persons ensuring the effective management of the establishments subject to this instruction, within the meaning of Article L. 511-13 of the Monetary and Financial Code, are authorized to sign.

c) A narrative report containing the information appearing in Annex 12 of this instruction. This report is communicated to the Prudential Control and Resolution Authority on authenticated paper support and signed by one of the responsible executives or by persons regularly accredited with the General Secretariat of the Prudential Control and Resolution Authority, or communicated under the conditions set by the Prudential Control and Resolution Authority's Instruction No. 2025-I-05.

Land credit societies and housing finance companies wishing to benefit from the "European High-Quality Covered Bond" label must also include in the narrative report the information mentioned in paragraph 3 of Annex 12, allowing the granting and control of this label by the Prudential Control and Resolution Authority.

The statements mentioned in a) and b) of this Article as well as the report mentioned in c) of this Article are attested by the specific auditor of the land credit society or housing finance company. The specific auditor's attestation, in application of Article L. 513-23 of the Monetary and Financial Code, is transmitted by mail or electronically.

Article 3: Land credit societies and housing finance companies communicate to the Prudential Control and Resolution Authority a plan for the transfer of debt collection in accordance with Chapter 4 of Regulation No. 99-10 of July 9, 1999. The details are presented in Annex 11 of this instruction. This plan is communicated to the Prudential Control and Resolution Authority once a year and is established based on figures finalized on December 31.

Article 4: Instruction No. 2016-I-09 of March 11, 2016, on the coverage ratio of land credit societies and housing finance companies, and Instruction No. 2014-I-17 of December 8, 2014, on the regulatory statements mentioned in Article 10 of CRBF Regulation No. 99-10 of July 9, 1999, are repealed. References to the repealed Instructions No. 2016-I-09 and No. 2014-I-17 appearing in other instructions shall be understood as references to this instruction.

Article 5: This instruction enters into application on July 8, 2022. Paris, March 9, 2022

The Designated President, Denis BEAU