Regulatory Alerts2022-07-11
Added · Updated
DNB supervision on covered bonds
Effective 8 July 2022, the Dutch implementation of the European Covered Bonds Directive abolishes issuance caps and backbook ratios under Section 40i of the Decree on Prudential Rules Wft. Existing programmes not adapted to the new regulations are prohibited from making new issuances, while adapted programmes and all new programmes must comply with updated prudential standards and utilize the European covered bond (premium) label. DNB replaces annual programme reviews with a risk-based supervisory approach, requiring banks to submit self-assessment forms to demonstrate compliance with the new legal framework.
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