Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Liquidity risk
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Disclose name of institution / entity:
Type of submitter:
Credit institution
Subject Matter:
Assets encumbered for a residual maturity of one year or more in a cover pool funded by Covered bonds for NSFR purposes

Does the 85 % required stable funding factor apply to assets encumbered for a residual maturity of one year or more in a cover pool funded by Covered bonds issued directly in the market, as well as to the assets underlying self-issued Covered bonds used as collateral for long term ECB funding or SFT with the market?

Background on the question:

With reference to the Article 428ag (h) of Regulation EU 2019/876, in the context of Covered bonds that comply with Article 52(4) of Directive 2009/65/EC or requirements as set out in Article 129(4) or (5) of the Regulation, the 85% of RSF factor could be applied to all assets encumbered for a residual maturity of over one year in a cover pool funded by covered bonds issued for funding directly to investors in the market, as well as also to those assets underlying the retained Covered bonds that are used as guarantee for long term ECB funding or Repo transactions. 

Date of submission:
Published as Rejected Q&A
Rationale for rejection:

This question has been rejected because the objective of the Q&A tool is not to answer questions that put into doubt the correctness of the legal framework or that would require a modification of the legal framework in order to address the question.

The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.

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Rejected question