Collateral

Eligible assets

Eligible assets are basic (underlying assets) used in outright operations or as a collateral in monetary policy operations. Eligible assets shall meet preset required eligibility criteria harmonised with the Eurosystem. The NBS is entitled to carry out only collateralised credit operations of the Eurosystem’s monetary policy, where eligible assets constitute the subject of collateral.

Eligible underlying assets are classified into two groups:

• marketable assets – debt instruments, comprising securities traded on regulated or other comparable markets of financial instruments recognised by the ECB according to eligibility criteria for non-regulated     markets (marketable assets),

• non-marketable assets – debt instruments comprising credit claims or debt securities (Retail Mortgage Backed Debt Securities “RMBDs”) that are not marketable on regulated or other comparable markets of financial instruments recognised by the EC according to eligibility criteria for non-regulated markets (non-marketable assets).

List of Eligible Assets

The ECB publish a comprehensive list of eligible marketable assets daily on its website, including lists by individual euro area countries. Neither the ECB nor NCB publish lists of non-marketable assets or lists of debtors / guarantors for these assets.

Eurosystem credit assessment framework

he Eurosystem Credit Assessment Framework comprises harmonised rules and procedures which ensure that the Eurosystem requirement of high credit standards for all eligible assets used in its monetary policy operations is met. These rules ensure for the Eurosystem that the four credit assessment sources are consistent, accurate and comparable, both for marketable and non-marketable assets. These rules are also used for the assessment of the issuers of marketable assets and debtors of non-marketable assets that are credit claims as well as guarantors for the individual asset types.

The following assessment groups are the credit assessment information sources:

• External Credit Assessment Institutions (ECAI),
• Internal Rating Based (IRB) systems of the counterparties,
• In-house Credit Assessment System (ICAS) of the NCBs.

Mobilisation / demobilisation of marketable eligible assets

Národná banka Slovenska (NBS) may conduct Eurosystem credit operations only if they are based on sufficient eligible assets as collateral.

In a pooling system, where a counterparty’s eligible assets are included in a pool of assets, the total value of assets after haircut in the collateral pool must be at least equal to the total value of the credit operations, including interest, that are to be collateralised. The assets that counterparties use as collateral may be mobilised on a domestic or on a cross-border basis and shall be marketable or non-marketable..

Schedule

Requests for mobilisation / demobilisaiton of domestic eligible assets shall be sent by not later than 16:00. In the case of special circumstances, contact the NBS.

Requests for the cross-border mobilisation / demobilisation of eligible assets shall be sent by not later than 16:00.