Guideline (EU) 2022/987 of the European Central Bank of 2 May 2022 amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60) (ECB/2022/17)

• Published date: 24 June 2022
• Subject Matter: European Central Bank (ECB),Economic and Monetary Union
• Official Gazette Publication: Official Journal of the European Union, L 167, 24 June 2022

24.6.2022 EN Official Journal of the European Union L 167/113

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GUIDELINE (EU) 2022/987 OF THE EUROPEAN CENTRAL BANK

of 2 May 2022

amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60) (ECB/2022/17)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first indent of Article 127(2) thereof,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular the first indent of Article 3.1, Articles 9.2, 12.1, 14.3 and 18.2 and the first paragraph of Article 20 thereof,

Whereas:

(1) Achieving a single monetary policy entails defining the tools, instruments and procedures to be used by the Eurosystem in order to implement such a policy in a uniform manner throughout the Member States whose currency is the euro.

(2) Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60) (1) should be amended to incorporate necessary technical and editorial adjustments relating to certain aspects of monetary policy operations.

(3) The retention of bilateral procedures for money market transactions is no longer warranted as experience has shown that tender procedures are effective and provide eligible counterparties equal access to Eurosystem monetary policy operations.

(4) Adjustments to the eligibility criteria for asset-backed securities (ABSs) need to be made in order to explicitly exclude cash-flow generating assets that do not entail full recourse against the obligors, and to enhance the transparency of the Eurosystem disclosure requirements related to the eligibility assessment process for ABSs.

(5) Certain adjustments need to be made to provide greater clarity with regard to the treatment for eligibility purposes of credit claims with a current coupon-related cash flow which is negative.

(6) In view of the Eurosystem’s decision to change the loan-level data reporting requirements of the Eurosystem’s collateral framework in line with the disclosure requirements specified in Regulation (EU) 2017/2402 of the European Parliament and of the Council (2), adjustments to the loan-level data reporting requirements for non-marketable debt instruments backed by eligible credit claims are necessary.

(7) Certain adjustments need to be made to ensure the consistency of the Eurosystem’s collateral framework with the relevant provisions of Directive (EU) 2019/2162 of the European Parliament and of the Council (3), and Regulation (EU) No 575/2013 of the European Parliament and of the Council (4), following the amendments introduced in that Regulation in relation to covered bonds by Regulation (EU) 2019/2160 of the European Parliament and of the Council (5), which apply from 8 July 2022.

(8) The number of credit assessment sources accepted by the Eurosystem for the mobilisation of credit claims as collateral has been reduced from four to three, following the phasing out of the use of rating tools as credit assessment sources from the general framework. The relevant provisions need to be updated to reflect that change.

(9) The Governing Council conducted a comprehensive review of the temporary collateral easing measures adopted since 2020 in response to the exceptional economic and financial circumstances associated with the spread of coronavirus disease (COVID-19). These measures included the increase in the limit with respect to unsecured debt instruments issued by credit institutions and their closely linked entities that can be submitted or used as collateral by Eurosystem counterparties. The review took into account (a) that Eurosystem counterparties participating in targeted longer-term refinancing operations conducted under Decision (EU) 2019/1311 of the European Central Bank (ECB/2019/21) (6) should be able to continue mobilising sufficient collateral for these operations; (b) the collateral impact for Eurosystem counterparties associated with each of such measures; (c) risk considerations associated with each of such measures; (d) other market and policy considerations. In that context, the Governing Council decided on 23 March 2022, inter alia, to restore the previous limit with respect to the abovementioned unsecured debt instruments, in order to reduce the Eurosystem’s exposure to concentration risk. This needs to be reflected in the relevant provisions of Guideline (EU) 2015/510 (ECB/2014/60).

(10) Eligible counterparties whose access to monetary policy operations has been limited on the grounds of prudence or following an event of default pursuant to Article 158 of Guideline (EU) 2015/510 (ECB/2014/60) may have recourse to the marginal lending facility following an automatic request under the credit extension procedure set out in Annex III to Guideline ECB/2012/27 (7). It is necessary to specify the sanctions that are applicable if, and to the extent that, defined limits are exceeded as a result of recourse to the marginal lending facility in such circumstances.

(11) It is necessary to provide greater clarity with regard to the treatment for eligibility purposes of interest reference rates for marketable and non-marketable assets.

(12) In line with the Governing Council’s decision of 17 February 2021, the collateral eligibility criteria applied to sustainability-linked bonds need to be further clarified.

(13) Updates to the provisions on the eligibility of securities settlement systems and links are necessary to explicitly address the case of central securities depositories (CSDs) established in Member States that join the euro area, and to reflect the fact that references to the relevant user assessment framework became redundant with the finalisation of the authorisation process under Regulation (EU) No 909/2014 of the European Parliament and of the Council (8).

(14) The retention of the emergency foreign collateral framework is no longer warranted given the operational burden of maintaining the framework, the fact that the framework has never been activated, and the likely limited availability of the targeted assets to Eurosystem counterparties in case of need.

(15) Regulation (EC) No 1745/2003 of the European Central Bank (ECB/2003/9) (9) on the application of minimum reserves has been recast and repealed by Regulation (EU) 2021/378 of the European Central Bank (ECB/2021/1) (10). The changes introduced by Regulation (EU) 2021/378 (ECB/2021/1) need to be reflected in the provisions relating to minimum reserves in Guideline (EU) 2015/510 (ECB/2014/60).

(16) Certain provisions of the Guideline need to be updated to reflect the consequences for the monetary policy implementation framework, and the rights and obligations of stakeholders, in particular as regards open market operations, liquidity management, standing facilities, the sanctioning regime, minimum reserve requirements, and remuneration of current accounts, in the event of the activation of the Enhanced Contingency Solution (ECONS) under the TARGET2 system, and a prolonged disruption of TARGET2 lasting more than one business day.

(17) Therefore, Guideline (EU) 2015/510 (ECB/2014/60) should be amended accordingly,

HAS ADOPTED THIS GUIDELINE:

Article 1

Amendments

Guideline (EU) 2015/510 (ECB/2014/60) is amended as follows:

(1)

Article 2 is amended as follows: (a) point 4 is replaced by the following: ‘(4) “bilateral procedure” means a procedure whereby the NCBs or, if appropriate, the ECB conduct outright transactions directly with one or more counterparties, or through stock exchanges or market agents, without making use of tender procedures;’; (b) the following point 24-a is inserted: ‘(24-a) “ECONS credit” means credit provided within contingency processing as referred to in paragraph 6 of Appendix IV to Annex II to Guideline ECB/2012/27;’; (c) point 31 is replaced by the following: ‘(31) “Eurosystem credit operations” means: (a) liquidity-providing reverse transactions, i.e. liquidity-providing Eurosystem monetary policy operations excluding foreign exchange swaps for monetary policy purposes and outright purchases; (b) intraday credit; and (c) ECONS credit;’; (d) point 42 is replaced by the following: ‘(42) “indicative calendar for the Eurosystem's regular tender operations” means a calendar prepared by the Eurosystem that indicates the timing of the reserve maintenance period, as well as the announcement, allotment and maturity of main refinancing operations and regular longer-term refinancing operations;’; (e) point 53 is replaced by the following: ‘(53) “maintenance period” has the same meaning as defined in Regulation (EU) 2021/378 of the European Central Bank (ECB/2021/1) (*1); (*1) Regulation (EU) 2021/378 of the European Central Bank of 22 January 2021 on the application of minimum reserve requirements (ECB/2021/1) (OJ L 73, 3.3.2021, p. 1).’;" (f) point 68 is replaced by the following: ‘(68) “non-EEA G10 countries” means the countries participating in the Group of Ten (G10) that are not EEA countries, i.e. Canada, Japan, Switzerland, the United Kingdom and the United States;’; (g) the following point 88-a is inserted: ‘(88-a) “sustainability-linked bond issuer group” means a group of undertakings that operate as a single economic entity and constitute a reporting entity for the purposes of presenting consolidated accounts, comprising the parent undertaking and all of its direct and indirect subsidiaries;’; (h)

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