Source: http://www.ecbc.eu/framework/freeCompare/add_filter_framework/82
Timestamp: 2019-04-23 19:13:09+00:00

Document:
(2) Comments: The bondholder has recourse to the Pfandbrief institute (PfG Art. 27 - 31). The bondholder does not have a direct recourse to the member banks. The Pfandbrief institutes, however, have a direct recourse to the member banks.
(3) Comments: Cover assets are owned by the member banks and pledged to Pfandbrief institutes.
(4) Comments: The Pfandbrief institutes are the originators of the Swiss Pfandbriefe and the member banks are the originators of the mortgage loans.
(5) Comments: The legal basis of Swiss Pfandbriefe is the Pfandbrief law (PfG) established in 1931.
(6) Comments: Specific legal framework under PfG and Swiss Federal Banking Law on Banks and Saving Banks (Swiss Banking law) superseding the general insolvency law.
PfG Art. 14 - 26 and Swiss Banking law Art. 25 - 37.
(7) Comments: Only first class mortgages on properties in Switzerland are eligible (PfG Art. 19 and 34 - 36).
95 % are residential, private single-family homes or apartment blocks and only 5 % commercial properties.
(8) Comments: Not applicable. There are no public sector cover assets.
(10) Comments: PfG, Swiss Code of Obligations, Securities Exchange law, Swiss Banking law.
(11) Comments: PfG Art. 34 - 36: The maximum LTV is 2/3 of market value. Detailed valuation regulation have to be authorised by the Federal finance department.
Mortgage lending value fixed by Pfandbrief institute completely independent of the member bank. The decision to accept a cover assets lies with Pfandbrief institute and not with member bank.
(12) Comments: PfG Art 34 - 36: Max. 66.67 % or lower.
(13) Comments: Eligibility criteria and LTVs have to be met continuously.
(14) Comments: Eligibility criteria and LTVs have to be met continuously.
(15) Comments: E.g. at least 80 % of cover value after haircuts have to be residential mortgage loans.
(16) Comments: By law there is no interest rate risk, no currency rate risk and no maturity mismatch.
(17) Comments: By law matching between loans to member banks and Swiss Pfandbriefe, as both are denominated in CHF and have the same terms.
Derivatives are not used, as there are no currency rate risk, no interest rate risk and no maturity mismatch.
(18) Comments: Derivatives are not used, as there are no currency rate risk, no interest rate risk and no maturity mismatch.
(19) Comments: Not relevant, due to low LTV. Outstanding historical track. No loss since establishment of PfG (1931).
(20) Comments: Not relevant, due to low LTV. Outstanding historical track. No loss since establishment of PfG (1931).
4) Maturity extension for defined contracts (private placements of Swiss Pfandbriefe of "Limmat" program).
(24) Comments: A breach of liquidity risk mitigants is not allowed as the liquidity buffer is stipulated by law.
(25) Comments: The Swiss Pfandbrief system is twofold. The two Swiss Pfandbrief institutes are the outsourced cover pool of their member banks. The Pfandbrief institutes value the coverage (only mortgages) completely independent of the member banks and supervise them daily.
(26) Comments: Reports to member banks, rating agency, auditors, shareholders, Federal Finance Department, Swiss exchange authorities, corporate website.
(27) Comments: Yes, by Swiss Pfandbrief law and Swiss Financial Market Authority (FINMA) regulations.
(28) Comments: Overcollateralisation of at least 8 % is measured after valuation of mortgage loan and individual LTV of max. 66.7 %.
(29) Comments: Law based action by the Swiss Financial Market Supervisory Authority (FINMA).
A breach of liquidity risk mitigants is not allowed as the liquidity buffer is stipulated by law.
(30) Comments: Yes, as per Pfandbrief law only the two Swiss Pfandbrief institutes are legally permitted to issue Swiss Pfandbriefe.
(31) Comments: Yes, according to Swiss Pfandbrief law.
(32) Comments: Supervision of the Swiss Pfandbrief institutes, the issuance of Swiss Pfandbriefe and the member banks.
(33) Comments: Yes, based on Swiss Pfandbrief law and Swiss Banking law.
(34) Comments: The Pfandbrief institutes select and valuate the cover pool fully independent of the member bank (who grants the mortgage to the house owner) and supervises the cover pool daily.
(36) Comments: If a member bank goes insolvent (as opposed to a Swiss Pfandbrief institute), the Swiss Pfandbriefe will be satisfied according to the conditions of the issue and they will be repaid at the time of their contractual maturity. Automatic acceleration only occurs in a case of bankruptcy of the Pfandbrief institute.
(37) Comments: The cover pool consists only of eligible mortgage loans as per cover pool register.
(38) Comments: There are no significant other creditors than Pfandbrief bondholders due to special bank principle.
(42) Comments: Defined by law.
2: The bondholder has recourse to the Pfandbrief institute (PfG Art. 27 - 31). The bondholder does not have a direct recourse to the member banks. The Pfandbrief institutes, however, have a direct recourse to the member banks.
3: Cover assets are owned by the member banks and pledged to Pfandbrief institutes.
4: The Pfandbrief institutes are the originators of the Swiss Pfandbriefe and the member banks are the originators of the mortgage loans.
5: The legal basis of Swiss Pfandbriefe is the Pfandbrief law (PfG) established in 1931.
6: Specific legal framework under PfG and Swiss Federal Banking Law on Banks and Saving Banks (Swiss Banking law) superseding the general insolvency law. PfG Art. 14 - 26 and Swiss Banking law Art. 25 - 37.
7: Only first class mortgages on properties in Switzerland are eligible (PfG Art. 19 and 34 - 36). 95 % are residential, private single-family homes or apartment blocks and only 5 % commercial properties.
8: Not applicable. There are no public sector cover assets.
10: PfG, Swiss Code of Obligations, Securities Exchange law, Swiss Banking law.
11: PfG Art. 34 - 36: The maximum LTV is 2/3 of market value. Detailed valuation regulation have to be authorised by the Federal finance department. Mortgage lending value fixed by Pfandbrief institute completely independent of the member bank. The decision to accept a cover assets lies with Pfandbrief institute and not with member bank.
12: PfG Art 34 - 36: Max. 66.67 % or lower.
13: Eligibility criteria and LTVs have to be met continuously.
14: Eligibility criteria and LTVs have to be met continuously.
15: E.g. at least 80 % of cover value after haircuts have to be residential mortgage loans.
16: By law there is no interest rate risk, no currency rate risk and no maturity mismatch.
17: By law matching between loans to member banks and Swiss Pfandbriefe, as both are denominated in CHF and have the same terms. Derivatives are not used, as there are no currency rate risk, no interest rate risk and no maturity mismatch.
18: Derivatives are not used, as there are no currency rate risk, no interest rate risk and no maturity mismatch.
19: Not relevant, due to low LTV. Outstanding historical track. No loss since establishment of PfG (1931).
20: Not relevant, due to low LTV. Outstanding historical track. No loss since establishment of PfG (1931).
22: Risk management and limits include: 1) Law requires cash flow matching between loans to member banks and Swiss Pfandbriefe 2) Substantial free assets in liquid form (repo capable: SNB GC bond basket holdings can be repoed against CHF to EUREX counterparties) 3) Several cash flow concentration limits per member bank, monitored daily 4) Maturity extension for defined contracts (private placements of Swiss Pfandbriefe of "Limmat" program).
23: Risk management and limits include: 1) Law requires cash flow matching between loans to member banks and Swiss Pfandbriefe 2) Substantial free assets in liquid form (repo capable: SNB GC bond basket holdings can be repoed against CHF to EUREX counterparties) 3) Several cash flow concentration limits per member bank, monitored daily 4) Maturity extension for defined contracts (private placements of Swiss Pfandbriefe of "Limmat" program).
24: A breach of liquidity risk mitigants is not allowed as the liquidity buffer is stipulated by law.
25: The Swiss Pfandbrief system is twofold. The two Swiss Pfandbrief institutes are the outsourced cover pool of their member banks. The Pfandbrief institutes value the coverage (only mortgages) completely independent of the member banks and supervise them daily.
26: Reports to member banks, rating agency, auditors, shareholders, Federal Finance Department, Swiss exchange authorities, corporate website.
27: Yes, by Swiss Pfandbrief law and Swiss Financial Market Authority (FINMA) regulations.
28: Overcollateralisation of at least 8 % is measured after valuation of mortgage loan and individual LTV of max. 66.7 %.
29: Law based action by the Swiss Financial Market Supervisory Authority (FINMA). A breach of liquidity risk mitigants is not allowed as the liquidity buffer is stipulated by law.
30: Yes, as per Pfandbrief law only the two Swiss Pfandbrief institutes are legally permitted to issue Swiss Pfandbriefe.
31: Yes, according to Swiss Pfandbrief law.
32: Supervision of the Swiss Pfandbrief institutes, the issuance of Swiss Pfandbriefe and the member banks.
33: Yes, based on Swiss Pfandbrief law and Swiss Banking law.
34: The Pfandbrief institutes select and valuate the cover pool fully independent of the member bank (who grants the mortgage to the house owner) and supervises the cover pool daily.
36: If a member bank goes insolvent (as opposed to a Swiss Pfandbrief institute), the Swiss Pfandbriefe will be satisfied according to the conditions of the issue and they will be repaid at the time of their contractual maturity. Automatic acceleration only occurs in a case of bankruptcy of the Pfandbrief institute.
37: The cover pool consists only of eligible mortgage loans as per cover pool register.
38: There are no significant other creditors than Pfandbrief bondholders due to special bank principle.

References: Art. 27
 Art. 14
 Art. 25
 Art. 19
 Art. 34
 Art 34
 Art. 27
 Art. 14
 Art. 25
 Art. 19
 Art. 34
 Art 34