RegAlert2022-06-15 | 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.
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NBB_2022_15 – 17 January 2022 Circular – Page 1/9 boulevard de Berlaimont 14 – BE-1000 Brussels tel. +32 2 221 54 65 company number: 0203.201.340 RPM Brussels www.bnb.be Circular Brussels, 14 June 2022 Reference: NBB_2022_15 your contact:
Lisanne Vanderstappen tel. +32 2 221 41 97 lisanne.vanderstappen@nbb.be Practical Application of the Law of 25 April 2014 on the Status and Supervision of Credit Institutions and Brokerage Companies, as Amended by the Law of 26 November 2021 to Ensure the Transposition of Directive 2019/2162 Concerning the Issuance of Covered Bonds and Public Supervision of Covered Bonds Scope This circular is addressed to credit institutions listed in Article 82, paragraph 1, of the Law of 25 April 2014 on the Status and Supervision of Credit Institutions and Brokerage Companies, and to Belgian covered bonds issued and listed in Article 82, paragraph 2, of the same law. Summary/Objectives This circular clarifies the practical application of the Law of 25 April 2014 on the Status and Supervision of Credit Institutions and Brokerage Companies, as amended by the Law of 26 November 2021 to ensure the transposition of Directive 2019/2162 concerning the issuance of covered bonds and public supervision of covered bonds, and of the Royal Decree of 11 October 2012 on the issuance of Belgian covered bonds by Belgian credit institutions, as amended by the Royal Decree of 27 January 2022. This circular will enter into force on 8 July 2022. Structure
- General authorization of the credit institution
- Specific authorization for each covered bond issuance
- Clarifications on the limitation of covered bonds to be issued
- List of credit institutions authorized to issue covered bonds – List of issued covered bonds
- Clarifications on the definition and valuation of cover assets
- Clarifications on the maintenance of a special asset register
- Clarifications on the liquidity test
- Clarifications on risk management
- Reporting
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Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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