BANCI | ENGLISH

EBA publishes Decision specifying the benchmark rate under the Mortgage Credit Directive

Trimite stirea unui prieten
Nume *
E-mail *
E-mail prieten *
Mesaj
Cod validare * Turing Number
Tastati codul din imagine (doar cifre)
195.154.184.126

Autor: Bancherul.ro
2016-03-22 08:41

The European Banking Authority (EBA) published today a Decision specifying the formula to be used by creditors when calculating the benchmark rate under the Mortgage Credit Directive (MCD), said EBA in a statement.

The MCD requires creditors to use, under certain circumstances, a benchmark rate specified by the EBA for the illustrative examples in the European Standardised Information Sheet (ESIS) for variable rate mortgages. The EBA formula will apply 20 days after its publication in the EU Official Journal but can also be used by creditors prior to its formal publication.

The formula developed by the EBA includes an underlying rate that is specific to each Member State, namely the European Central Bank (ECB) rate for Eurozone countries and the national central bank rate for non-Eurozone countries. As a result, the formula will create an EBA benchmark rate that is bespoke to each Member State, and remains up to date over time.

However, to ensure that consumers receive the most appropriate example, the EBA rate only applies where no national rate has been set. The EBA's proposal was subject to a six-week consultation period between October and November 2015. The EBA received four responses, a summary of which and the EBA's feedback to those responses, is included in the Report.

The Decision will be translated into the official EU languages. It will be published on the EBA website and in the Official Journal of the European Union.

Background and legal basis

The Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property (Mortgage Credit Directive - MCD) was published in the Official Journal of the Commission on 28 February 2014, with a transposition deadline of 21 March 2016.

Annexes I and II of the MCD specify the information that creditors must include in the ESIS such as the interest rate and other costs. Specifically, for a variable borrowing rate, the ESIS must include a warning that the variability could affect the actual level of the Annual Percentage Rate of Charge (APRC). The warning must be accompanied by an illustrative example of the APRC. In addition, under the heading "Amount of each instalment", the ESIS must include a statement indicating that the borrowing rate is variable and an illustration of a maximum instalment amount. The MCD envisages that in certain circumstances, both illustrative examples will be calculated by creditors using a benchmark rate specified by the EBA.

Source: EBA statement

Comentarii

Tuarek
Kankanise
Voila ... :)



Adauga un comentariu
Nume *:

E-mail *:
(nu se afiseaza pe site)
Subiect:
*
Comentariu:

Turing Number

Tastati codul din imagine (doar cifre)  



Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH



Agreement between National Bank of Greece and Export-Import Bank of Romania for the sale of Banca Romaneasca

National Bank of Greece (“NBG”) announces the signing of a definitive agreement with ExportImport Bank of Romania (“EximBank”) for the sale of its 99.28% stake in Banca Romaneasca (“BROM”). The Transaction is expected to increase NBG’s CET1 ratio detalii

Banca Transilvania financial results as at December 31, 2018

BT’s Preliminary Financial Results as at December 31, 2018 (press release) Banca Transilvania, the largest lender of the local economy in 2018: customer support twinned by the Bancpost integration ●196,000 loans to companies and individual detalii

EU Regulation on cross-border payments

Frequently asked questions: Intra-EU cross-border payments Brussels, 14 February 2019 What did the Commission propose in 2018 and why? EU cross-border payments in euro are very cheap or even free in euro area Member States (priced as domestic payments) but still expensive in non-euro area Member States. The two amendments proposed by the Commission in March 2018 to the Regulation on cross-border payments will reduce the cost of intra-EU payments within the entire EU and unify the single retail payments market. This will benefit in particular citizens and businesses from the non-euro area Member States by letting them have access to cheaper intra-EU euro payments. Transactions made in EU currencies other than the euro are not detalii

National Bank of Romania (NBR) Board decisions on monetary policy: rate unchanged at 2,5%, risks stem from new fiscal measures

NBR Board decisions on monetary policy The annual CPI inflation rate continued to go down in December 2018 to 3.27 percent from 3.43 percent in November, moving deeper into the variation band of the flat target. Thus, the NBR fulfilled its objective of maintaining price detalii

Ultimele Comentarii