Regulatory Alerts2013-08-20
Added · Updated
Leveraged financing by investment institutions
The document establishes supervisory obligations for managers of investment institutions regarding the use of leveraged financing under Article 3:18b of the Financial Supervision Act. Managers must demonstrate to De Nederlandsche Bank (DNB) that their leverage limits are reasonable and strictly adhered to. DNB is authorized to impose upper limits or further restrictions on leverage if necessary to safeguard financial system stability. Additionally, DNB shares information on leverage usage with other Member State supervisors, ESMA, and the ESRB to identify potential risks to EU financial market stability.
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