HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 218/20
EN
Official Journal of the European Union
15.8.2012
GUIDELINES
GUIDELINE OF THE EUROPEAN CENTRAL BANK
of 2 August 2012
on additional temporary measures relating to Eurosystem refinancing operations and eligibility of
collateral and amending Guideline ECB/2007/9
(ECB/2012/18)
(2012/476/EU)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
institutions and markets statistics ( 3 ) need to be aligned
with the amendments to Regulation (EC) No 1745/2003
of the European Central Bank of 12 September 2003 on
the application of minimum reserves (ECB/2003/9) ( 4 )
Having regard to the Treaty on the Functioning of the European
introduced by Regulation (EU) No 1358/2011 ( 5 ).
Union, and in particular the first indent of Article 127(2)
thereof,
(3) NCBs
should
not
be
obliged
to
accept
as
collateral
in
Having regard to the Statute of the European System of Central
Eurosystem credit operations eligible bank bonds guar
Banks and of the European Central Bank, and in particular the
anteed by a Member State under a European Union/Inter
first indent of Article 3.1 and Articles 5.1, 12.1, 14.3 and 18.2
national Monetary Fund programme or by a Member
thereof,
State whose credit assessment does not meet the Euro
system benchmark for establishing its minimum
requirement for high credit standards, as set out in
Decision ECB/2011/25.
Whereas:
(1)
Pursuant to Article 18.1 of the Statute of the European
(4) Decision
ECB/2011/25
reviewed
the
exception
from
the
System of Central Banks and of the European Central
close links prohibition set out in Section 6.2.3.2 of
Bank, the European Central Bank (ECB) and the
Annex I to Guideline ECB/2011/14 with respect to
national central banks of Member States whose
government-guaranteed bank bonds own used as
currency is the euro (hereinafter the ‘NCBs’) may
collateral by counterparties.
conduct credit operations with credit institutions and
other market participants, with lending being based on
adequate collateral. The general conditions under which
the ECB and the NCBs stand ready to enter into credit
operations, including the criteria determining the eligi
bility of collateral for the purposes of Eurosystem
(5) Counterparties
participating
in
Eurosystem
credit
oper
ations should be allowed to increase the levels of own
credit operations, are laid down in Annex I to
use of government-guaranteed bank bonds that they had
Guideline ECB/2011/14 of 20 September 2011 on
on 3 July 2012 subject to the ex ante approval of the
monetary policy instruments and procedures of the Euro
Governing Council in exceptional circumstances. The
system ( 1 ).
requests submitted to the Governing Council for the ex
ante approval need to be accompanied by a funding plan.
(2)
On 8 December 2011 and 20 June 2012 the Governing
Council decided on additional enhanced credit support
measures to support bank lending and liquidity in the
euro area money market, including measures set out in
(6) Decision
ECB/2011/25
needs
to
be
replaced
by
this
Decision ECB/2011/25 of 14 December 2011 on
Guideline, which should be implemented by the NCBs
additional temporary measures relating to Eurosystem
in their contractual or regulatory arrangements.
refinancing operations and eligibility of collateral ( 2 ). In
addition, references to the reserve ratio in Guideline
( 3 ) OJ L 341, 27.12.2007, p. 1.
ECB/2007/9 of 1 August 2007 on monetary, financial
( 4 ) OJ L 250, 2.10.2003, p. 10.
( 5 ) Regulation (EU) No 1358/2011 of the European Central Bank of
14 December 2011 amending Regulation (EC) No 1745/2003 on
( 1 ) OJ L 331, 14.12.2011, p. 1.
the application of minimum reserves (ECB/2003/9) (ECB/2011/26)
( 2 ) OJ L 341, 22.12.2011, p. 65.
(OJ L 338, 21.12.2011, p. 51).

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EN
15.8.2012 Official
Journal
of
the
European
Union L
218/21
(7) The
additional
measures
set
out
in
this
Guideline
should (b) there shall be no mix of different asset classes in the cash-
apply temporarily, until the Governing Council considers
flow generating assets;
that they are no longer necessary, to ensure an appro
priate monetary policy transmission mechanism,
(c) the cash-flow generating assets backing the ABS shall not
contain loans which are any of the following:
HAS ADOPTED THIS GUIDELINE:
Article 1
(i) non-performing at the time of issuance of the ABS;
Additional measures relating to refinancing operations and
eligible collateral
1. The
rules
for
the
conduct
of
Eurosystem
monetary
policy
(ii) non-performing when incorporated in the ABS during
operations and the eligibility criteria for collateral laid down in
the life of the ABS, for example by means of a substi
this Guideline shall apply in conjunction with Guideline
tution or replacement of the cash-flow generating
ECB/2011/14.
assets;
2. In
the
event
of
any
discrepancy
between
this
Guideline
(iii) at any time, structured, syndicated or leveraged;
and Guideline ECB/2011/14, as implemented at national level
by the NCBs, the former shall prevail. The NCBs shall continue
to apply all provisions of Guideline ECB/2011/14 unaltered
unless otherwise provided for in this Guideline.
(d) the ABS transaction documents shall contain servicing
continuity provisions.
Article 2
Option to terminate or modify longer-term refinancing
operations
2. ABS
referred
to
in
paragraph
1
that
have
two
ratings
of
at
least single A ( 2 ) shall be subject to a valuation haircut of 16 %.
The Eurosystem may decide that, under certain conditions,
counterparties may reduce the amount of, or terminate,
certain longer-term refinancing operations before maturity.
Such conditions shall be published in the announcement of
3. ABS
referred
to
in
paragraph
1
that
do
not
have
two
the relevant tender or another format deemed appropriate by
ratings of at least single A shall be subject to the following
the Eurosystem.
valuation haircuts: (a) ABS backed by commercial mortgages
shall be subject to a valuation haircut of 32 %; and (b) all
other ABS shall be subject to a valuation haircut of 26 %.
Article 3
Admission of certain additional asset-backed securities
1. In
addition
to
asset-backed
securities
(ABS)
eligible
under 4. A
counterparty
may
not
submit
ABS,
which
are
eligible
Chapter 6 of Annex I to Guideline ECB/2011/14, ABS which do
pursuant to paragraph 1 as collateral, if the counterparty, or any
not fulfil the credit assessment requirements under Section 6.3.2
third party with which it has close links, acts as an interest rate
of Annex I to Guideline ECB/2011/14 but which otherwise
hedge provider in relation to the ABS.
comply with all eligibility criteria applicable to ABS pursuant
to Guideline ECB/2011/14, shall be eligible as collateral for
Eurosystem monetary policy operations, provided that they
have two ratings of at least triple B ( 1 ), at issuance and at any
5. An
NCB
may
accept
as
collateral
for
Eurosystem
monetary
time subsequently. They shall also satisfy all the following
policy operations ABS whose underlying assets include resi
requirements:
dential mortgages or loans to SMEs or both and which do
not fulfil the credit assessment requirements under Section
6.3.2 of Annex I to Guideline ECB/2011/14 and the
requirements referred to in paragraph 1(a) to (d) and
(a) the cash-flow generating assets backing the ABS shall
paragraph 4 above but which otherwise comply with all eligi
belong to one of the following asset classes: (i) residential
bility criteria applicable to ABS pursuant to Guideline
mortgages; (ii) loans to small and medium-sized enterprises
ECB/2011/14 and have two ratings of at least triple B. Such
(SMEs); (iii) commercial mortgages; (iv) auto loans; (v)
ABS shall be limited to those issued before 20 June 2012 and
leasing; and (vi) consumer finance;
shall be subject to a valuation haircut of 32 %.
( 1 ) A ‘triple B’ rating is a rating of at least ‘Baa3’ from Moody’s, ‘BBB-’
( 2 ) A ‘single A’ rating is a rating of at least ‘A3’ from Moody’s, ‘A-’ from
from Fitch or Standard & Poor’s, or a rating of ‘BBB’ from DBRS.
Fitch or Standard & Poor’s, or a rating of ‘AL’ from DBRS.

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L 218/22
EN
Official Journal of the European Union
15.8.2012
6. For
the
purposes
of
this
Article:
2. NCBs
which
decide
to
accept
credit
claims
in
accordance
with paragraph 1 shall establish eligibility criteria and risk
control measures for this purpose by specifying deviations
(1) ‘residential mortgage’, besides residential real estate
from the requirements of Annex I to Guideline ECB/2011/14.
mortgage-backed loans, shall include guaranteed residential
Such eligibility criteria and risk control measures shall include
real estate loans (without a real estate mortgage) if the
the criterion that the credit claims are governed by the laws of
guarantee is payable promptly on default. Such guarantee
the Member State of the NCB establishing the eligibility criteria
may be provided in different contractual formats, including
and risk control measures. The eligibility criteria and risk
contracts of insurance, provided they are granted by a
control measures shall be subject to the Governing Council’s
public sector entity or a financial institution subject to
prior approval.
public supervision. The credit assessment of the guarantor
for the purposes of such guarantees must comply with
credit quality step 3 in the Eurosystem’s harmonised
rating scale over the life of the transaction;
3. In
exceptional
circumstances
NCBs
may,
subject
to
the
Governing Council’s prior approval, accept credit claims: (a) in
(2) ‘small enterprise’ and ‘medium-sized enterprise’ shall mean
application of the eligibility criteria and risk control measures
an entity engaged in an economic activity, irrespective of its
established by another NCB pursuant to paragraphs 1 and 2; or
legal form, where the reported sales for the entity or if the
(b) governed by the law of any Member State other than the
entity is a part of a consolidated group, for the consolidated
Member State in which the accepting NCB is established.
group is less than EUR 50 million;
(3) ‘non-performing loan’ shall include loans where payment of
4. Another
NCB
shall
only
provide
assistance
to
an
NCB
interest or principal is past due by 90 or more days and the
accepting credit claims pursuant to paragraph 1 if bilaterally
obligor is in default, as defined in point 44 of Annex VII to
agreed between both NCBs and subject to prior approval by
Directive 2006/48/EC of the European Parliament and of
the Governing Council.
the Council of 14 June 2006 relating to the taking up and
pursuit of the business of credit institutions ( 1 ), or when
there are good reasons to doubt that payment will be
made in full;
Article 5
Acceptance of certain government-guaranteed bank bonds
(4) ‘structured loan’ means a structure involving subordinated
credit claims;
1. NCBs
shall
not
be
obliged
to
accept
as
collateral
for
Euro
system credit operations eligible bank bonds guaranteed by a
Member State under a European Union/International Monetary
(5) ‘syndicated loan’ means a loan provided by a group of
Fund programme, or by a Member State whose credit
lenders in a lending syndicate;
assessment does not comply with the Eurosystem’s
benchmark for establishing its minimum requirement for high
credit standards for issuers and guarantors of marketable assets
(6) ‘leveraged loan’ means a loan provided to a company that
in accordance with Sections 6.3.1 and 6.3.2 of Annex I to
already has a considerable degree of indebtedness, such as
Guideline ECB/2011/14.
buy-out or take-over-financing, where the loan is used for
the acquisition of the equity of a company which is also the
obligor of the loan;
2. NCBs
shall
inform
the
Governing
Council
whenever
they
decide not to accept the securities described in paragraph 1 as
(7) ‘servicing continuity provisions’ means provisions in the
collateral.
legal documentation of an ABS which ensure that a
default by the servicer does not lead to a termination of
servicing and which include triggers for the appointment of
a back-up servicer and a high-level action plan outlining the
operational steps to be taken once a back-up servicer is
3. Counterparties
may
not
submit
bank
bonds
issued
by
appointed and how the administration of the loans will
themselves and guaranteed by an EEA public sector entity
be transferred.
with the right to impose taxes and such bonds issued by
closely linked entities as collateral for Eurosystem credit oper
ations in excess of the nominal value of these bonds already
Article 4
submitted as collateral on 3 July 2012.
Admission of certain additional credit claims
1. NCBs
may
accept
as
collateral
for
Eurosystem
monetary
policy operations credit claims that do not satisfy the Euro
4. In
exceptional
cases,
the
Governing
Council
may
decide
system eligibility criteria.
on derogations from the requirement laid down in paragraph 3.
A request for a derogation shall be accompanied by a funding
( 1 ) OJ L 177, 30.6.2006, p. 1.
plan.

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EN
15.8.2012 Official
Journal
of
the
European
Union L
218/23
Article 6
The minimum (or “required”) reserves are computed as
follows:
Verification
The NCBs shall forward to the ECB by 14 August 2012 at the
Minimum (or “required”) reserves = reserve base × reserve
latest the texts and means by which they intend to comply with
ratio - lump sum allowance
Articles 1 to 5.
The reserve ratio applies in accordance with Regulation (EC)
Article 7
No 1745/2003 (ECB/2003/9).
Amendment to Guideline ECB/2007/9
___________
In Part 5 of Annex III the paragraph following Table 2 is
(*) OJ L 250, 2.10.2003, p. 10.’.
replaced by the following:
‘Calculation of lump-sum allowance for control purposes
Article 8
(R6):
Entry into force
Lump-sum allowance: The allowance is applied to every
This Guideline shall enter into force two days following its
credit institution. Each credit institution deducts a
adoption.
maximum lump sum designed to reduce the administrative
cost of managing very small reserve requirements. Should
[reserve base × reserve ratio] be less than EUR 100 000,
It shall apply from 14 September 2012.
then the lump sum allowance equals [reserve base ×
reserve ratio]. Should [reserve base × reserve ratio] be
Article 9
greater than or equal to EUR 100 000, then the lump sum
allowance equals EUR 100 000. Institutions allowed to report
Addressees
statistical data regarding their consolidated reserve base as a
This Guideline is addressed to all Eurosystem central banks.
group (as defined in Part 2, Section 1 of Annex III to Regu
lation (EC) No 25/2009 (ECB/2008/32)) hold minimum
reserves through one of the institutions in the group which
is acting as an intermediary exclusively for these institutions.
Done at Frankfurt am Main, 2 August 2012.
In accordance with Article 11 of Regulation (EC) No
1745/2003 of the European Central Bank of 12 September
For the Governing Council of the ECB
2003 on the application of minimum reserves
(ECB/2003/9) (*), in the latter case only the group as a
The President of the ECB
whole is entitled to deduct the lump sum allowance.
Mario DRAGHI

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