UK publishes review of the covered bond market
皇冠体育app Government and the FSA published today a joint review of the UK鈥檚 covered bond regulation.
皇冠体育app Government and the FSA published today a joint review of the UK鈥檚 covered bond regulation.
Responses to the joint review should be submitted by Friday 1 July 2011.
Covered bonds are an important source of funding for banks and building societies that can complement unsecured funding and securitisation.
皇冠体育app review proposes a number of measures that seek to build upon the UK鈥檚 existing covered bond regime. 皇冠体育appse measures aim to ensure that the UK covered bond market is better aligned with markets in other countries, enabling UK issuers of covered bonds to compete on a more level playing field.
皇冠体育app review also provides an update on the UK鈥檚 engagement with international partners on broader policies concerning covered bonds. In particular, the UK believes that in the exercise of any future 鈥榖ail-in鈥� powers, secured creditors鈥� rights to collateral should not be over-ridden.
Mark Hoban, Financial Secretary to the Treasury, said:
Making sure banks and building societies lend to families and businesses is vital for sustaining the recovery. Today鈥檚 review demonstrates the Government鈥檚 commitment to supporting the UK鈥檚 growing covered bond market. 皇冠体育app review will bring out the strengths of the UK鈥檚 covered bond regime and help lenders raise the funds they need to lend.
Notes for Editors
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皇冠体育app review: is available on the Treasury website
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Responses are requested by 1 July, and should be sent to: [email protected].
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Covered bonds are secured bonds issued by banks and building societies and typically backed by mortgages. Lenders issue covered bonds to raise funding.
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Like many European countries, the UK has a regulated framework for covered bonds. Regulated covered bonds must meet standards set out in legislation and are supervised by the FSA.
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Covered bonds are an important source of stable, long-term funding for banks and building societies. 皇冠体育appy can complement unsecured funding and securitisation to help banks develop a diversified, resilient funding model.
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皇冠体育app review will highlight the quality of the UK regime with the aim of increasing the appeal of UK covered bonds to investors.
Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to [email protected]
Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.