Read the latest article of Nicolas Michiels in Bank- en Financieel Recht – Droit bancaire et financier (Larcier/Intersentia) which focuses on the implementation of the Covered Bond Directive and the similarities and differences between covered bond regulatory frameworks in the EU, UK and US. It furthermore aims to provide a comprehensive overview of the key legal details of the new/updated covered bond legislation (or the need for it) in the individual countries.
In many jurisdictions, the introduction of covered bonds has had several positive outcomes. One of the significant benefits is the increased availability of affordable mortgages for borrowers. This has provided individuals with more options and flexibility when it comes to securing financing for their most significant life investment, namely, homeownership. Additionally, lenders have also gained access to a wider range of funding choices, enabling them to better meet the diverse needs of borrowers. Moreover, consumers now have more long-term borrowing options, allowing them to select financing terms that align with their financial goals and preferences.