Regulatory Alerts2022-01-28
Added · Updated
Decision on Requirements for Inclusion of Derivative Financial Instruments in the Cover Pool of Mortgage or Municipal Bonds
Banka Slovenije issued this Decision to establish specific eligibility criteria, documentation standards, and operational rules for including derivative financial instruments in the cover pool of mortgage or municipal bonds. The regulation mandates that derivatives must be contracted with eligible counterparties, adhere to standardized agreements, and serve to mitigate interest or currency risks within the cover pool. It further requires issuers to maintain comprehensive documentation and obtain prior written consent from the cover pool trustee and the counterparty before inclusion or exclusion of positions.
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