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 | Norwegian Covered Bonds |
---|---|
I. STRUCTURE OF THE ISSUER | |
1. Who is the issuer? |
|
2. Does the bondholder have recourse to the credit institution? |
|
3. Who owns the cover assets? |
|
4. Is the issuer the originator of the assets? |
|
(1) Comments: Loans are originated partly by the issuer, partly acquired from parent bank or from another bank. | |
II. FRAMEWORK | |
1. Are the bonds governed by a special covered bond Legislation? |
|
2. What is the legal framework for bankruptcy of the issuer of covered bonds? |
|
(2) Comments: Global comments for this chapter:http://www.fno.no/en/Covered-Bonds/legislation1/. | |
(3) Global comments for this chapter:http://www.fno.no/en/Main/Covered-Bonds/legislation1/ | |
III. COVER ASSETS | |
1. What types of assets may be included in cover pools? |
|
(4) Comments: Exposures to public sector entities, mortgages, derivative contracts, and substitute assets. Substitute assets may not exceed 20 % of cover pool and may include: covered bonds and MBS issued in an EEA country, and which qualify for credit quality step 1, as well as government bonds and other highly liquid and secure assets. Total exposure to credit institutions which qualify for credit quality step 1 or 2 (derivatives and substitute assets) may not exceed 15 % of nominal value of outstanding bonds. Exposures to credit institutions which qualify for credit quality step 2 shall not exceed 10 % of nominal value of outstanding bonds, cf. CRR article 129(1)(c). | |
2. What is the geographical scope for public sector assets? |
|
(5) Comments: Only countries where the state has a credit rating by a ECAI of credit quality step 2. | |
3. What is the geographical scope for mortgage assets? |
|
(6) Comments: EEA and OECD countries, only countries where the state has a credit rating by a ECAI of credit quality step 2 (today mainly domestic). | |
4. Are regular covered bond specific disclosure requirements to the public mandatory? |
|
(7) Comments: All large and medium size issuers publish cover pool data quarterly; see: http://www.fno.no/en/Main/Covered-Bonds/CBIC-European-Transparency-Standards/ | |
IV. VALUATION OF THE MORTGAGE COVER POOL & LTV CRITERIA | |
1. LTV is calculated using which valuation?[4] |
|
2. Are there any special LTV limits used solely for calculating collateralisation rates for the cover pool (if yes, specify)? |
|
(8) Comments: Second homes (holiday): 60% | |
3. Do bondholders get the benefit of that portion of the loan which exceeds the LTV cap? |
|
4a. Is there an LTV cap which makes the entire loan ineligible to be put in the cover pool (if yes, specify)? |
|
(9)
Comments: Residential - 75%; Commercial - 60% If the LTV of a loan subsequent to inclusion exceeds the limit (the value of the property has decreased after inclusion), the loan stays in the pool, but only that part that is within LTV 75/60 % is taken into account when calculating the size of the cover pool. |
|
4b. Is there an LTV cap which would require a loan to be removed from the cover pool? |
|
(10) Comments: It is not required to remove the loan from the cover pool once included but it does not count when testing the coverage. The same applies to NPL (>90 days). | |
5. Is there any additional LTV limit on a portfolio basis? |
|
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? |
|
(11) Comments: According to the Norwegian legislation, a mortgage credit institution shall not assume greater interest rate or foreign exchange risk than what is prudent at any and all times. A mortgage credit institution is obliged to establish limits on foreign exchange risk and interest rate risk. | |
2. What is the primary method for the mitigation of market risk? |
|
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: |
|
4. What type of coverage test is applied? |
|
(12)
Comments: The law requires: (1) Value cover, i.e. prudent market value (assets and derivative contracts) and net present value (issued bonds) cover (2) Payment flows cover. |
|
5. What is the frequency of coverage calculations? |
|
6. What types of stress scenarios are applied? |
|
(13) Comments: Stress tests are required to test the value cover and the liquidity risk. Normally stress tests on interest rate changes, currency movements and declining house prices are also performed. | |
7. What is the frequency of stress test calculations? |
|
(14) Comments: Periodically | |
. Exposure to liquidity risk | |
8. Is exposure to liquidity risk required to be mitigated by law or contract? |
|
9. What is the primary method for the mitigation of liquidity risk on interest payments? |
|
10. What is the primary method for the mitigation of liquidity risk on principal payments? |
|
11. Is there any grace period in case of a breach of liquidity risk mitigants? |
|
(15) Comments: It is the supervisor who decides how to respond in case of any breach. | |
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? |
|
14. Are there any regular public reporting requirements for market and liquidity risk? |
|
(16) Comments: The issuing institution is required to publish quarterly financial reports. | |
. Overcollateralisation | |
15. Is mandatory minimum overcollateralisation required? |
|
(17) Comments: The law requires that the value of the cover pool shall exceed the value of the covered bonds at all times. Individual issuers may commit themselves to a given minimum OC. | |
16. What is the level of minimum mandatory overcollateralisation? | |
(18) Comments: The law requires that the value of the cover pool shall exceed the value of the covered bonds. No specific OC level is required by law. | |
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? |
|
19. What is the consequence of not fixing a breach of the coverage test? |
|
(19) Comments: Supervisor’s intervention: Supervisor may i.a. disallow or suspend new issuance of CBs. | |
VI. COVER POOL MONITOR & BANKING SUPERVISION | |
1. Is a special license required for the issuing of covered bonds? |
|
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? |
|
(20) Comments: The report goes from the monitor of the cover pool (appointed by the FSA) to the FSA at least once a year or if special occasion occurs. | |
3. What is the role of the banking supervision regarding covered bonds? |
|
(21) Comments: Supervision is performed by the cover pool monitor on behalf of the supervisor. | |
4. Is there a special role of banking supervision in crisis regarding covered bonds? |
|
5. Is there a cover pool monitor independent from the issuer? |
|
(22) Comments: The monitor is appointed by the supervisor. | |
6. If there is an independent cover pool monitor, what are its duties? |
|
VII. SEGREGATION OF ASSETS & BANKRUPTCY REMOTENESS OF COVERED BONDS | |
1. Do covered bonds automatically accelerate when the credit institution goes insolvent? |
|
2. What is the cover pool? |
|
3. How are the covered bondholders protected against claims from other creditors in case of insolvency of the issuer? |
|
4. Is there recourse to the credit institution’s insolvency estate upon a cover pool default? |
|
5. Are there provisions that require derivatives to continue in case of insolvency of the credit institution? |
|
6. If derivatives are permitted in the cover pool, what is their ranking? |
|
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? |
|
(23) Comments: Special and wide limits for banks and insurance companies' investments in covered bonds in the large exposure regulations, as well as large investment limits for mutual funds. | |
IX. ADDITIONAL INFORMATION | |
1. Link to National Association representing covered bond interests |
|
2. Link to national regulators and supervisors | |
3. Fact Book Country Chapter |
|
4. Hypostat Country Chapter |
|
Comments for your selection