Regulatory Alerts2022-01-28
Added · Updated
Decision on Aligning Coverage in Cover Assets with Liabilities from Mortgage or Municipal Bonds
Banka Slovenije issued this Decision to establish detailed rules for issuers of mortgage and municipal bonds to ensure adequate coverage of liabilities by cover assets. It mandates monthly nominal and present value coverage tests, stress testing for interest rate and exchange rate fluctuations, and specific valuation standards for derivative financial instruments. The regulation aims to maintain financial stability by strictly aligning the risk profiles of cover assets with the corresponding bond liabilities.
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