1 Amendments of Jonás FERNÁNDEZ related to 2018/0042(COD)
Amendment 17 #
Proposal for a regulation
Recital 11
Recital 11
(11) In order to further enhance the quality of the covered bonds that receive the preferential capital treatment as provided for in Article 129 of Regulation (EU) No 575/2013, that preferential treatment should be subject to a minimum level of overcollateralisation, meaning a level of collateral exceeding the coverage requirements as referred to in Article 15 of Directive (EU) 20../… [OP: Please insert reference to Directive (EU) on the issue of covered bonds and covered bond public supervision and amending Directive 2009/65/EC and Directive 2014/59/EU]. Member States can decide to apply a higher minimum level of overcollateralization to covered bonds issued by credit institutions located in the Member State concern. This should not affect other covered bonds with a lower minimum level of overcollateralization that comply with this Regulation from benefitting from its provisions. Such a requirement serves the purpose of mitigating the most relevant risks arising in case of the issuer’s insolvency or resolution.