AI Summary of Article 428t 7 % required stable funding factor
The recently articulated provisions specify that unencumbered assets, classified as level 1 extremely high-quality covered bonds as defined in the relevant delegated act under Article 460(1), will incur a mandated stable funding factor of 7%. This requirement is applicable irrespective of the assets’ adherence to the operational criteria and liquidity buffer composition mandated by the delegated act.
This regulatory stance underscores the continued emphasis on ensuring robust funding stability and liquidity management, reinforcing the framework for high-quality covered bonds within the broader landscape of regulatory compliance.
Article 428t 7 % required stable funding factor
Unencumbered assets that are eligible as level 1 extremely high quality covered bonds pursuant to the delegated act referred to in Article 460(1) shall be subject to a 7 % required stable funding factor, regardless of whether they comply with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in that delegated act.