Covered bonds could fill up to 60% of LCR, says EC

By Bill Thornhill
08 May 2014

The European Commission (EC) could be ready to lift the amount of covered bonds that can be used to fill Liquidity Coverage Ratio (LCR) requirements from a maximum of 40% to 60%, according to the head of the Danish Mortgage Bankers Federation. The outcome could be known within a few days.

Karsten Beltoft, director of the Danish Mortgage Bankers’ Federation, told GlobalCapital's sister publication The Cover on Tuesday that local banks may be able to invest up to 60% of their liquidity buffers in covered bonds.

This would be a big win for the Danish banking system, which has lobbied ...

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