Eligible counterparties

Národná banka Slovenska may conduct Eurosystem monetary policy operations only with eligible counterparties, i.e. counterparties that fulfil the following criteria:

a) they must be subject to the Eurosystem’s minimum reserve system and must not have been granted an exemption from their obligations under that system;

b) they must be financially sound;

c) they must be subject to at least one form of specified banking supervision;

d) they must fulfil all operational requirements specified in the contractual or regulatory arrangements applied by NBS or by the European Central Bank with respect to the specific instrument or operation.

Eligible counterparties of NBS must also have their registered office in the Slovak Republic and must be registered in the Commercial Register of the Slovak Republic, including if they are a branch of a foreign credit institution. In order to participate in Eurosystem monetary policy operations, counterparties conclude relevant framework agreement/agreements with NBS:

a) a framework agreement on collateralised credit operations;

b) a framework agreement on term deposit facility operations;

c) a framework agreement on foreign currency credit operations;

d) an agreement on the operation and use of the electronic bidding system for monetary policy operations;

Eligible counterparties established in Slovakia may participate only in Eurosystem monetary policy operations conducted by NBS. If an eligible counterparty of NBS has establishments, i.e. a head office and branches, across multiple euro area countries, each establishment may only participate in Eurosystem operations conducted by its home national central bank.