Select Framework(s)
Results are displayed below
- Australia
- Australian Covered Bonds
- Austria
- FBS - Fundierte Bankschuldverschreibungen
- Pfandbriefe
- Belgium
- Belgium Covered Bonds
- Brazil
- Brazil Covered Bonds
- Bulgaria
- Bulgarian Covered Bonds
- Canada
- Canadian Covered Bonds
- Chile
- Bonos Hipotecarios (BH) - Chilean Covered Bonds
- Cyprus
- Cypriot Covered Bonds
- Czech Republic
- Czech Republic Covered Bonds
- Denmark
- Realkreditobligationer - RO
- Særligt Dækkede Obligationer - SDO
- Særligt Dækkede Realkreditobligationer - SDRO
- Estonia
- Estionian Covered Bonds
- Finland
- Finnish Covered Bonds
- France
- Caisse de Refinancement de l'Habitat - CRH
- General Law Based CBs
- Obligations Foncières - OF
- Obligations à l'Habitat - OH
- Germany
- Pfandbriefe
- Greece
- Greek Covered Bonds
- Hungary
- Hungarian Covered Bonds
- Iceland
- Icelandic Covered Bonds
- Ireland
- Asset Covered Securities - ACS
- Italy
- Obbligazioni Bancarie Garantite - OBG
- Luxembourg
- Lettres de Gage hypothécaires
- Lettres de Gage mobilières
- Lettres de Gage mutuelles
- Lettres de Gage publiques
- Netherlands
- Dutch registered CBs programmes
- New Zealand
- New Zealand Covered Bonds
- Norway
- Norwegian Covered Bonds
- Poland
- Polish Covered Bonds
- Portugal
- Mortgage CB (Obrigações Hipotecárias)
- Public Sector CB (Obrigações sobre o Sector Público)
- Romania
- Obligatiuni Ipotecare - Mortgage Covered Bonds
- Russia
- Mortgage Obligations
- Singapore
- Singapore Covered Bonds
- Slovakia
- Slovakian Covered Bonds
- Slovenia
- Slovenian Covered Bonds
- South Korea
- South Korean Covered Bonds
- Spain
- Cédulas Hipotecarias - CH
- Sweden
- Swedish Covered Bonds
- Switzerland
- Swiss Pfandbriefe
- Contractual Covered Bonds
- Credit Suisse CB
- UBS CB
- Valiant
- Turkey
- Turkish Covered Bonds
- United Kingdom
- Regulated Covered Bonds - RCB
- Unregulated Covered Bonds
- United States
- US Covered Bonds
Select Chapter(s)
- I. STRUCTURE OF THE ISSUER
- II. FRAMEWORK
- III. COVER ASSETS
- IV. VALUATION OF THE MORTGAGE COVER POOL & LTV CRITERIA
- V. ASSET-LIABILITY GUIDELINES
- VI. COVER POOL MONITOR & BANKING SUPERVISION
- VII. SEGREGATION OF ASSETS & BANKRUPTCY REMOTENESS OF COVERED BONDS
- VIII. RISK WEIGHTING & COMPLIANCE WITH EUROPEAN LEGISLATION
- IX. ADDITIONAL INFORMATION
Questions | Turkish Covered Bonds |
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I. STRUCTURE OF THE ISSUER | |
1. Who is the issuer? |
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(1) Comments: Banks and mortgage finance corporations with a licence from the Capital Markets Board can issue. | |
2. Does the bondholder have recourse to the credit institution? |
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3. Who owns the cover assets? |
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4. Is the issuer the originator of the assets? |
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(2) Comments: Investor reporting and reporting to the Capital Markets Board is mandatory but a public disclosure is not specifically addressed in the sense that it is referred under the Pfandbriefe Act. | |
II. FRAMEWORK | |
1. Are the bonds governed by a special covered bond Legislation? |
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(3) Comments: Law 5582 "Law Amending the Laws Related to the Housing Finance System" enacted on 21 February 2007 and by-law on Turkish Mortgage Covered Bonds (İTMK) released by the Capital Markets Board (Serial: III, No:33) on 4 August 2007. | |
2. What is the legal framework for bankruptcy of the issuer of covered bonds? |
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(4) Comments: In the event of issuer bankruptcy, until the İTMK are paid a Manager is appointed. The assets that are registered in the cover register are segregated. | |
III. COVER ASSETS | |
1. What types of assets may be included in cover pools? |
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(5) Comments: Residential and commercial mortgage loans are included in the collateral. Upto 15% of substitute collateral may include, cash deposits with OECD or Turkish central banks, short term debt issued by Central Bank of Turkey, or debt instruments with a treasure reimbursement state guarantee, or any other substitute collateral that may be approved by CMB of Turkey. | |
2. What is the geographical scope for public sector assets? | |
(6) Comments: Not Applicable | |
3. What is the geographical scope for mortgage assets? |
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4. Are regular covered bond specific disclosure requirements to the public mandatory? |
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(7) Comments: But limited to investors and CMB of Turkey. | |
IV. VALUATION OF THE MORTGAGE COVER POOL & LTV CRITERIA | |
1. LTV is calculated using which valuation?[4] |
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2. Are there any special LTV limits used solely for calculating collateralisation rates for the cover pool (if yes, specify)? |
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3. Do bondholders get the benefit of that portion of the loan which exceeds the LTV cap? |
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(8) Comments: Included in cover pool matching criteria. | |
4a. Is there an LTV cap which makes the entire loan ineligible to be put in the cover pool (if yes, specify)? |
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4b. Is there an LTV cap which would require a loan to be removed from the cover pool? |
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5. Is there any additional LTV limit on a portfolio basis? |
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V. ASSET-LIABILITY GUIDELINES | |
. Exposure to market risk | |
1. Is exposure to market risk (e.g. interest rate, currency risks) required to be mitigated by law or contract? |
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(9) Comments: Upto 15% of derivatives entered into to hedge interest rate and currency risks arising from mismatches between outstanding İTMK and their collateral can be recorded in the cover register. | |
2. What is the primary method for the mitigation of market risk? |
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3. If the answer to the above question on market risk mitigation is “Use of derivative hedge instruments”, please specify whether those instruments are entered into: |
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4. What type of coverage test is applied? |
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5. What is the frequency of coverage calculations? |
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6. What types of stress scenarios are applied? |
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(10) Comments: Parallel shifting of interest rates and exchange rates where applicable. | |
7. What is the frequency of stress test calculations? |
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. Exposure to liquidity risk | |
8. Is exposure to liquidity risk required to be mitigated by law or contract? |
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9. What is the primary method for the mitigation of liquidity risk on interest payments? |
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10. What is the primary method for the mitigation of liquidity risk on principal payments? |
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11. Is there any grace period in case of a breach of liquidity risk mitigants? |
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12. What is the consequence of not fixing a breach of liquidity risk mitigants? | |
. Monitoring of exposures to market and liquidity risk | |
13. Who monitors the maintenance of coverage tests? |
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14. Are there any regular public reporting requirements for market and liquidity risk? |
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. Overcollateralisation | |
15. Is mandatory minimum overcollateralisation required? |
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16. What is the level of minimum mandatory overcollateralisation? |
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17. If mandatory overcollateralisation is required, are the amounts above the minimum OC level protected? | |
18. Is there any grace period in case of a breach of the coverage test? |
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19. What is the consequence of not fixing a breach of the coverage test? |
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(11) Comments: A manages is appointed. | |
VI. COVER POOL MONITOR & BANKING SUPERVISION | |
1. Is a special license required for the issuing of covered bonds? |
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2. Are there special reporting duties of the covered bond issuer to the supervision authority concerning covered bonds and the cover pool, which go beyond the regular banking supervision? |
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3. What is the role of the banking supervision regarding covered bonds? |
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4. Is there a special role of banking supervision in crisis regarding covered bonds? |
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5. Is there a cover pool monitor independent from the issuer? |
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6. If there is an independent cover pool monitor, what are its duties? |
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(12) Comments: An issuer must appoint a qualifying audit firm authorised and listed by CMB as cover monitor and the CMB should approve such appointment. Thecover monitor should report to the CMB of the results of the examinations. | |
VII. SEGREGATION OF ASSETS & BANKRUPTCY REMOTENESS OF COVERED BONDS | |
1. Do covered bonds automatically accelerate when the credit institution goes insolvent? |
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2. What is the cover pool? |
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3. How are the covered bondholders protected against claims from other creditors in case of insolvency of the issuer? |
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4. Is there recourse to the credit institution’s insolvency estate upon a cover pool default? |
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5. Are there provisions that require derivatives to continue in case of insolvency of the credit institution? |
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(13) Comments: Even though it is not stated openly, a manager (pool administrator) will be appointed after the credit institutions's insolvency, and only that manager can decide to register or de-register derivatives recorded in the cover register. | |
6. If derivatives are permitted in the cover pool, what is their ranking? |
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VIII. RISK WEIGHTING & COMPLIANCE WITH EUROPEAN LEGISLATION | |
1. Does the covered bond fulfil the criteria of UCITS 52(4)? | |
2. For further information regarding the compliance to the criteria of Article 129 of the Capital Requirements Regulation (CRR), please see the following links: http://ecbc.hypo.org/Content/default.asp?PageID=504#position https://www.coveredbondlabel.com | |
3. Are listed covered bonds eligible in repo transactions with the national central bank? | |
4. Are there any special investment regulations regarding covered bonds? | |
IX. ADDITIONAL INFORMATION | |
1. Link to National Association representing covered bond interests |
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2. Link to national regulators and supervisors |
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3. Fact Book Country Chapter |
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4. Hypostat Country Chapter |
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