The new Guidelines introduce changes to the monetary policy implementation framework, including:
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First, the provisions on the Eurosystem’s valuation haircuts have been removed from the General Documentation and put into the new Guideline on the Eurosystem’s valuation haircuts. This will provide information on valuation haircuts for counterparties in a standalone legal instrument.
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Second, the new Guideline on valuation haircuts refines the provisions on additional haircuts applied to covered bonds that are own-used (i.e. submitted as collateral by the issuer of the covered bonds or an entity closely linked to the issuer). As a rule, the additional haircuts will be applied only to the share of the covered bond issue that is own-used and not to the entire issue.
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Third, “non-marketable debt instruments backed by eligible credit claims”, an asset class introduced in the Eurosystem’s collateral framework on 2 November 2015, will be eligible for cross-border use through the Eurosystem’s standard correspondent central banking model (CCBM) procedure.
Guidelines (ECB/2015/34) amending the General Documentation Guideline on the implementation of the Eurosystem’s monetary policy and Guideline (ECB/2015/35) on the Eurosystem’s valuation haircuts are published on the European Central Bank’s (ECB) website for information purposes.
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