VUB's Market Share and Financial Services
SLOVAK CB LEGISLATION AT A GLANCE
COVER POOL COMPOSITION
Base Assets:
at least 90% of the aggregate value of the cover pool (excluding the Liquid Assets)
residential mortgage loans to individuals
original term up to 30 years
LTV up to 80%
exclusion and deletion of the loans whose debtor is defaulted from the Covered Bond Register
properties located in the Slovak Republic
→ Substitute Assets:
up to 10% of the aggregate value of the cover pool less the Liquid Assets
cash or deposits with NBS, ECB, EU Member state central bank and all other assets that meet conditions under
Article 129 (1)(c) of EU Regulation No. 575/2013
→ Hedging derivatives:
cash flows and posted collateral of derivative whose purpose is to manage and mitigate currency or interest rate
risk connected with issued CBs
→ Liquid Assets:
required to cover 180-days expected negative cash flows from the CB, if any
HQLA Tier 1 & Tier 2A assets under Articles 10 and 11 of EU Regulation 2015/61
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