EBA publishes final draft technical standards on close correspondence for own-issued covered bonds

The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) on close correspondence between the fair value of an institution's covered bonds and the fair value of its assets. These RTS will be part of the Single Rulebook aimed at enhancing regulatory harmonisation in the EU.

The proposed final draft RTS relate to prudential filters applied to own funds. In particular, they specify the criteria for defining the close correspondence between the fair value of the covered bonds and the fair value of the assets for the purpose of calculating capital requirements.

Legal basis and next steps

These final RTS have been developed in accordance with article 33 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (colloquially known as Capital Requirements Regulation or CRR).

The final standards have been sent today to the European Commission for their adoption as EU Regulations that will be directly applicable throughout the EU.