sk sk

Collateral

Eligible assets

Mobilisation / demobilisation of marketable eligible assets

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.

  • Mobilisation / demobilisation of marketable eligible assets on domestic basis

    For mobilisation of domestic assets, counterparties may use one of the following technique to mobilise assets held with the local depository Centrálny depozitár cenných papierov SR, a.s. (‘CDCP’):

    – Repo technique – where assets are being transferred from counterparty owner’s account with CDCP to NBS holder’s account with CDCP but without transfer of ownership,

    – Pledge technique – where assets are being transferred from counterparty owner´s account with CDCP to a separate counterparty owner´s account with CDCP that is pledged in favour of only one pledgee – NBS).

  • Mobilisation / demobilisation of marketable eligible assets on cross-border basis

    For mobilisation / demobilisation of eligible assets on cross-border basis, the correspondent central banking model (CCBM) is used.

    The CCBM1 is a mechanism established by the European System of Central Banks with the purpose to ensure that all marketable and non-marketable assets eligible for use in monetary policy operations or to obtain liquidity in TARGET2 are made available to all its Eurosystem counterparties, regardless of where the assets or the counterparty are situated. Under the CCBM, the national central banks (NCBs) acts as custodians for each other in respect of assets accepted in their local depository (hereinafter ‘depository’).

    NBS uses the CCBM, acting as the home central bank (HCB) for Slovak counterparties mobilising / demobilising eligible assets on a cross-border basis, and as the correspondent central bank (CCB) for other NCBs and cross-border counterparties when mobilising /  demobilising Slovak eligible assets held in CDCP .

  • Mobilisation / demobilisation of nonmarketable assets

    For Eurosystem credit operations National bank of Slovakia accepts the following nonmarketable assets as collateral:

    a) credit claims,

    b) RMBDs (Retail Mortgage Backed Debt Securities),

    c) collection of fixed-term deposits,

    d) DECCs (Non-marketable debt instruments backed by eligible credit claims).