Erhvervs-, Vækst- og Eksportudvalget 2013-14
KOM (2011) 0452 Bilag 6
Ref. Ares(2014)358087 - 13/02/2014
BD/cq D(2014) 244425
Dear Ms Kjer Hansen,
Dear Ms Gaardsted,
Thank you for your letter of 20 January expressing surprise and disappointment at the majority
recommendation of the Board of Supervisors of the European Banking Authority (ЕВА) that all
covered bonds not be considered as assets of extremely high liquidity and credit quality (ie 'level 1'),
but only of high liquidity and credit quality (i.e. 'level 2'), despite the conclusions of EBA's own
technical report which showed that some covered bonds, including some Danish covered bonds,
could be considered as level 1 assets.
The Commission fully appreciates the crucial importance of the covered bond market for Denmark.
The Commission also recognises the long tradition and solidity of Danish covered bonds and their
good liquidity characteristics, even in times of acute stress, as has been demonstrated by EBA's own
technical report.
The Commission is required by 30 June 2014 to adopt a delegated act specifying in detail the general
liquidity coverage requirements including the legal definition of assets of high and of extremely high
liquidity and credit quality.
Allow me to stress that when adopting that delegated act, in accordance with Article 460(2) of the
Capital Requirements Regulation (CRR), the Commission will take into account not only the reports
submitted by the ЕВА and the international standards but also the specificities particular to the EU.
The Commission will also give due attention to the results of EBA's technical report and to the fact
that in Recital 100 of the CRR the EU co-legislators have expressed the expectation that some covered
bonds could be recognised as being of extremely high liquidity and credit quality and not just of high
liquidity and credit quality.
I can assure you that, my officials in the Internal Market Directorate General are currently working
very closely together with colleagues from the Danish authorities on this important issue in order to
find a satisfactory technical solution in the coming months.
Chair of the European Affairs Committee
Chair of the Business and Growth Committee
Parliament of Denmark
DK-1240 Copenhagen K
Commission européenne - Beri 10/034, B-1049 Bruxelles - Belgique - Tél.: - FAX
PDF to HTML - Convert PDF files to HTML files
Nevertheless, I can understand that this remains an issue of major concern to the Danish Parliament
and that you wish to explain at a political level more fully why the Danish Parliament is worried about
the severe consequences for the Danish financial sector were the Commission to follow the
recommendation of ЕВА.
Given that this is a rather technical subject, I I would suggest you to meet with Paulina Dejmek-Hack,
who is my Deputy Head of Cabinet. I have asked her to contact Mr Iben Tybaerg Schacke, Clerk to the
European Affairs Committee of the Danish Parliament, to find a mutually convenient date for such a
meeting as rapidly as possible.
Yours sincerely " '