Regulatory Alerts2022-06-15 | NBB_2022_15Added · Updated
Practical Application of the Law of 25 April 2014 on Credit Institutions and Brokerage Companies, Amended by the Law of 26 November 2021 to Transpose Directive 2019/2162
The National Bank of Belgium establishes practical rules for credit institutions to obtain general and specific authorizations for issuing covered bonds, including requirements for organizational capacity, outsourcing, and reporting to portfolio supervisors. A transitional 8% emission limit relative to total assets applies until 1 January 2024, after which it is removed, though the Bank retains the power to impose individual limits to protect non-covered bond creditors. The circular defines eligible collateral categories, valuation methods using independent experts, and specific coverage test calculations, requiring institutions to maintain a special asset register and adhere to strict liquidity and risk management standards.