2017年-ECB欧洲央行_Agreement_on_emergency_liquidity_assistance_7页_107kb

Summary of the Agreement on Emergency Liquidity Assistance (ELA)

1. Core Content

This document outlines the Emergency Liquidity Assistance (ELA) framework within the Eurosystem, detailing the responsibilities, costs, risks, information flow, and conditions for providing ELA to financial institutions in liquidity distress. It emphasizes the importance of maintaining the integrity of the single monetary policy and compliance with the prohibition of monetary financing under the Treaty of the Functioning of the European Union (TFEU).

2. Definition and Scope of ELA

• ELA is defined as the provision of central bank money or assistance that increases central bank money to a financial institution or group facing liquidity problems.
• ELA is not part of the single monetary policy, and its provision must not interfere with the objectives and tasks of the European System of Central Banks (ESCB).
• It must be in compliance with Article 123 TFEU, which prohibits monetary financing.

3. Allocation of Responsibilities, Costs, and Risks

• National Central Banks (NCBs) bear the main responsibility for providing ELA.
• Costs and risks are borne by the NCB or a third-party guarantor.
• The European Central Bank (ECB) is involved in information sharing and assessment to ensure ELA does not affect the single monetary policy.

4. Information Flow and Liquidity Control

4.1 General Information Requirements

• NCBs must notify the ECB of any ELA operation within two business days.
• Notification must include:
  • Name(s) of the financial institution(s)
  • Value and maturity date
  • Volume and currency
  • Collateral details (valuation, haircuts, guarantees)
  • Interest rate
  • Reason for ELA
  • Prudential supervisor's assessment
  • Systemic implications (if relevant)

4.2 Ongoing Information

• After initial notification, ongoing updates are required until ELA is repaid.
• Ex post information must be provided if not already given ex ante.
• Daily updates are required for non-collateral valuation changes; collateral valuation changes should be reported with other updates or upon ECB request.

4.3 Funding Plan

• The institution receiving ELA must submit a funding plan within two months of the first provision.
• It must update the funding plan quarterly in line with the procedure approved by the Governing Council on 25 September 2015.

4.4 Regulatory Capital Information

• Institutions receiving ELA must report monthly on their regulatory capital ratios (Common Equity Tier 1, Tier 1, Total Capital, and Leverage Ratio) on an individual and consolidated basis.

4.5 Recapitalisation Plan

• If an institution is in breach of own funds requirements, it must submit a recapitalisation plan to the ECB for assessment.

4.6 Exit Strategy

• For ELA lasting longer than six months, the NCB must provide an exit strategy and update it if changes occur.

4.7 Threshold for ECB Involvement

• If ELA exceeds €500 million, the NCB must notify the ECB Executive Board in advance.
• If ELA exceeds €2 billion, the Executive Board must assess the risk of interference with the single monetary policy and request the Governing Council to take a position.
• The Governing Council may prohibit ELA within 24 hours of notification, unless an emergency overnight operation is approved.

5. Solvency Criterion for ELA

A credit institution is considered solvent for ELA purposes if:

• Its Common Equity Tier 1, Tier 1, and Total Capital Ratios (as per Regulation (EU) No 575/2013) meet the harmonised minimum levels (4.5%, 6%, and 8%, respectively), or
• It has a credible prospect of recapitalisation within 24 weeks of the reference quarter, which may be extended in exceptional cases by the Governing Council.

6. Duration of ELA

• ELA may only be provided for more than 12 months if the Governing Council does not object, and this must be requested at least once after 10 months.
• For ELA exceeding 12 months, the Governing Council may impose additional requirements and conditions, and the NCB Governor must justify the extension monthly.

7. Pricing of ELA

• NCBs charge a penalty interest rate to institutions receiving ELA.
• For euro-denominated reverse transactions, the minimum rate is Marginal Lending Facility rate + 100 basis points.
• For euro-denominated intraday ELA, the minimum rate is 1% per annum.

8. Communication on ELA

• NCBs may publicly communicate about ELA in their country if they deem it necessary.
• They must notify the Governing Council in advance of any communication plan, including the content and proposal.
• Communication should not reference any Governing Council assessments or decisions.
• It may include:
  • ELA ceiling and duration
  • Average ELA amount provided
  • Contextual information for public understanding
• The Governing Council may object to the communication if it could impact public confidence or financial stability.

9. Review

• The agreement will be reviewed by 2019 to ensure its continued relevance and effectiveness.

Key Points

• ELA is a tool for liquidity support, not part of the monetary policy.
• NCBs are responsible for ELA operations, with ECB oversight.
• Information transparency is crucial to avoid interference with the single monetary policy.
• Solvency is determined by regulatory capital ratios or a credible recapitalisation plan.
• Communication is allowed but must be pre-approved by the Governing Council.
• Monetary financing is prohibited, and ELA must be assessed for compliance with this rule.