QA2018-11 - Secured liabilities T01.00

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Feb 01, 2024
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Resolution Reporting Subject Matter Guidance
Guidance Documents Secured-/-Collateralised-Liabilities
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QA2018-11

Question


In the Template T01, row r120 – Secured Liabilities the meaning of “liabilities in the form of financial instruments used for hedging purposes “ is not clear. This definition pertains only to the cover pool of the covered bond or there are other liabilities used for hedging purposes that have to be included in r120?


Response


The definition provided in the guidance document should be clear enough, as it refers to liabilities that are either secured by assets of the institution itself or liabilities issued for hedging purposes (excluding derivatives). In the latter case, the instrument has to be part of a cover pool and national law foresees they are secured in a way similar to covered bonds. For specific types of instruments, as these can vary greatly by country, type of bank or even by institution, the bank should contact the IRT with the necessary details to determine the nature of the instruments