VUB's Market Share and Financial Services
SLOVAK CB LEGISLATION AT A GLANCE
MANDATORY TESTS
*starting from April 30, 2019
•
Overcollateralisation – minimum level 5%
-
the value of the cover pool must be at least 105% of the nominal amount
of outstanding covered bonds (&related costs)
Stress Test*
⚫ testing of credit risk, interest risk, currency risk, liquidity risk, counterparty
risk, operative risk and risk of decrease in property's value. The
parameters of the stress testing are to correspond with the parameters
used in the evaluation of capital adequacy of the Issuing Bank
•
⚫ carried out at least once per year
Liquidity test
all estimated negative cash flows, if any, during the following 180-days
shall be covered with a buffer of Liquid Assets
• performed on a daily basis.
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