In order to engage in Pfandbrief business, a specific licence is required demanding that issuers provide evidence of their intention to conduct Pfandbrief business on a regular and sustained basis. The benchmark role also results from the high liquidity of the Pfandbrief asset class. There has been no case of default so far.
To continue this success, lawmakers are permanently working to improve the Pfandbrief Act. The latest improvements were adopted in 2009 and 2010. At this point, I would like to make a brief comment on Basel III. The negotiations were finalized some months ago and the general outcome is an increase in equity requirements and new buffers to withstand future periods of stress.