Covered bonds may, at the request of the issuing bank, be included in a public register by De Nederlandsche Bank, provided:
- the issuing bank demonstrates that the bonds are to be designated as covered bonds;
- the bonds, in view of the large degree of security to be offered to holders of such bonds, have been given at the time of application a sufficient credit rating by a recognised credit rating agency (i.e. the credit rating is included in credit quality step 1 in the credit quality assessment scale as presented in paragraph 6.4 of Annex VI of the Recast Banking directive, such within the scope of the provisions of Part 3, paragraph 2, points 8 and 9 of the said Annex);
- a healthy ratio is maintained between the nominal value of the covered bonds and the consolidated balance sheet total of the issuing bank, with a view to protecting the interests of the other (unsecured) deposit holders of the issuing bank;
- the strategies and procedures of the issuing bank safeguard that sufficient assets have been pledged as collateral throughout the life of the bonds, taking account of the nature and the composition of the assets, , the surplus values, the risks to be taken into account and stress tests.
Covered bonds entered in the public register of De Nederlandsche Bank are referred to as ‘registered covered bonds’.