Covered bonds framework

Key points

The EESC:

• welcomes the proposals on covered bonds and calls rapid progress to achieve a successful outcome, especially as these proposals contribute to the achievement of objectives of establishing a CMU and completing the EMU. Furthermore, covered bonds promote cross-border financing operations and therefore more private risk-sharing too;
• calls for seizing upon for promoting the widespread take-up of covered bonds and developing markets for them throughout the EU;
• calls for strengthening the current leading position of the EU in the global markets of covered bonds;
• welcomes both the chosen approach of minimum harmonisation based on national regimes and the content of the proposals, for which solid foundations were laid by the European Parliament, the supervisors and other stakeholders;
• underlines the importance that the funds created by covered bonds are then used to provide additional financing for governments, businesses and households;
• is pleased that the proposal also envisages bringing covered bonds within the reach of smaller banks;
• nevertheless, calls for further consideration to be given to how this possibility can be fully harnessed;
• suggests additional consideration to be given to what further measures need to be taken to attract private savers and consumers to such bonds;
• recommends that use of the European label for covered bonds be made mandatory;
• suggests that the evaluation period of these proposals should be extended from 3 to 5 years.