The European Systemic Risk Board has published recommendation ESRB/2012/2 (dated 20 December 2012), which contains a set of recommendations on the funding of credit institutions.
The five recommendations include:
- Monitoring and assessment of funding risks and funding risk management by supervisors;
- Risk management of asset encumbrance by institutions;
- Monitoring of asset encumbrance by supervisors;
- Market transparency on asset encumbrance;
- Covered bonds and other instruments that generate encumbrance.