Post sponsored by

MIL OSI Translation. Region: Germany / Deutschland –

Source: Federal Ministry of Finance International / Financial Market

The European Pfandbrief is coming – the German standard remains

The Federal Cabinet today adopted a draft law to implement Directive (EU) 2019/2162 of the European Parliament and of the Council of November 27, 2019 on the issue of covered bonds and the public supervision of covered bonds (CBD Implementation Act) has been an export hit for a long time. It was first issued in 1769 as a child of the German financial market and has since become increasingly popular in Europe. With today’s proposed legislation, we are now implementing European requirements that were also largely inspired by the tried and tested German Pfandbrief. The German Pfandbrief standard is now being established across Europe.Sarah Ryglewski, Parliamentary State Secretary at the Federal Minister of Finance The so-called Covered Bonds Directive harmonizes regulations on bonds that are secured by assets such as real estate or public bonds. In Germany, implementation takes place in the Pfandbrief Act. Covered bonds fulfill an important financing function, especially for the real estate market. There is a vital interest in the real economy in a functioning market for covered bonds. This market is being strengthened by the European harmonization. The uniform names “European covered bond” and “European covered bond (premium)” introduced by the Covered Bonds Directive are to be protected by the Pfandbrief Act in future. The names will make it easier to sell the Pfandbrief abroad.


EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

MIL Translation OSI