EBA has published the final draft regulatory technical standards (RTS), under the Capital Requirements Regulation (CRR), on the close correspondence between the value of an institution’s covered bonds and the value of the institution’s assets relating to its own credit risk. EBA explains that the RTS deal with the situation where, by recognising unrealised gains, regulatory capital strengthens when the fair value of a bond decreases due to an increase in own credit risk. Unrealised gains and losses resulting from changes in the own credit standing are not, as a general rule, accepted. (Source: EBA Draft RTS Under Article 33 CRR)