Regulatory Alerts2021-11-10
CBC Directive on the Issue and Supervision of Covered Bonds of 2021 (RAA 456/2021)
The Central Bank of Cyprus issued Directive 456/2021 to establish comprehensive rules for the issuance, structural features, and public supervision of covered bonds by Approved Institutions. The Directive mandates strict eligibility criteria, including a minimum €50 million Common Equity Tier 1 capital requirement, detailed cover pool composition limits, and specific Loan-to-Value ratios for mortgage and commercial loans. It further introduces mandatory registration procedures, supervisory fees, disclosure obligations, and the appointment of an independent Cover Pool and Covered Bond Monitor to ensure ongoing compliance.
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