Regulatory standard

Quality - regulation - noun.

A minimum mandatory level of quality and technical specification, embodied within a formal regulation, thereby increasing the standard's usefulness and reliability.

Green bonds need a regulatory standard - ECB

"Our findings show that, first, in the absence of regulatory standards, investors seek credibility of green bonds and issuers...

[We find a] need for a regulatory standard that will provide a clear definition of green bonds and requirements to assure that proceeds raised from the issuance of green bonds contribute to the transition.

Institutional investors may not have strong incentives to monitor the environmental performance of green bonds while retail investors may not have the capacity and knowledge to so.

Thus, a regulatory standard is key to channel investments into projects fostering the transition.

Furthermore, only a common standard can help avoid investors’ confusion, loss of confidence and potential runs even on the best green bond."

Pricing of green bonds: drivers and dynamics of the greenium - European Central Bank - Working Paper 2728 - September 2022.

See also

• Bank supervision
• Capital Requirements Regulation (CRR)
• Climate Bonds Standard
• Credibility
• European Central Bank (ECB)
• Gold standard
• Green bond
• Greenium
• International Financial Reporting Standards (IFRS)
• Issuance
• Jurisdiction
• Law
• Legislation
• Market Abuse Regulation (MAR)
• Markets in Financial Instruments Regulation (MiFIR)
• Money Market Funds Regulation
• PRIIPs Regulation
• Primary legislation
• Prospectus Regulation
• Prudential regulation
• Prudential Regulation Authority (PRA)
• Prudential Regulation Committee
• Rate regulation
• Rate regulator
• Red tape
• Regime
• Regtech
• Regulation
• Regulator
• Regulatory arbitrage
• Regulatory capital
• Regulatory risk
• Regulatory Technical Standard (RTS)
• Reputational risk
• Retained EU law
• Secondary legislation
• Securities Financing Transactions Regulation (SFTR)
• Securitisation Regulation
• Self-regulation
• Self-regulatory organisation (SRO)
• Standard
• Standard Setting Body
• Sustainable Finance Disclosure Regulation (SFDR)
• Taxonomy Regulation

Other resource

• Pricing of green bonds: drivers and dynamics of the greenium - European Central Bank - Working Paper 2728 - September 2022