1 Amendments of Marco VALLI related to 2018/0042(COD)
Amendment 19 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) Extendable maturities structures are a new common practice in the covered bond market. Such bonds might be less risky than traditional hard bullet structures, as they may allow to preserve the value of cover pool assets, by avoiding fire sales in case of liquidity shortfall. No increase in the risk weights should be introduced for covered bonds with an extendable maturity structure, irrespective of its duration, if such extension takes place in the event that specific triggers occurs.