CRD III: ECB Opinion on Trading Book, Re-Securitization and Remuneration
20 August 2010
The opinion expressed a concern about the extension of the waiver for exposures in the form of covered bonds, collateralized by loans secured by residential and commercial real estate.
The opinion expressed concern about the extension of the waiver for exposures in the form of covered bonds, collateralized by loans secured by residential and commercial real estate. The opinion warns that a possible consequence of the proposed directive could be to provide strong incentives for monetary policy counterparties to package asset-backed securities into the cover pool of such covered bonds, thereby obtaining more favorable treatment, to the detriment of the Eurosystem’s risk exposure.
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