What Changed
- Introduction of second-best rating requirements for private sector assets and non-euro area public sector assets used as Eurosystem collateral.
- Updating of the risk control haircut schedule, including refined haircuts for own-used/retained assets and granular amortisation-based haircuts for credit claims.
- Reclassification of financial subsidiaries of non-financial corporate groups to haircut category III, aligning them with parent NFCs and subjecting them to climate factors.
The European Central Bank (ECB) has published amendments to its guidelines governing the implementation of monetary policy in the Eurosystem. The updated regulations, set out in Guidelines ECB/2026/26 and ECB/2026/27, were published on 29 September 2026 and will apply as of 30 November 2026 as part of the ECB's regular framework review. These measures amend Guideline (EU) 2015/510 (ECB/2014/60) and Guideline (EU) 2016/65 (ECB/2015/35).
The amendments affect financial institutions, non-financial corporate groups, and entities utilizing collateral in Eurosystem credit operations. Key changes introduced under the updated guidelines include:
1. External Rating Assessment: The second-best credit rating issued by external credit assessment institutions will now be used to determine eligibility and valuation haircuts for private sector assets submitted as collateral. This covers unsecured bank bonds, covered bank bonds, and assets issued by non-financial corporations (NFCs) and non-euro area public sector entities. Euro area public sector assets will continue to rely on the first-best credit rating.
2. Risk Control Framework and Haircut Schedules: The haircut schedule applied to collateral is updated to maintain risk protection and collateral availability. Changes include refining haircut levels for own-used or retained assets, as well as introducing greater granularity in haircuts for individual credit claims based on their amortisation type.
3. Treatment of Financial Subsidiaries of Non-Financial Corporations: Financial subsidiaries of NFC groups will be aligned with their parent companies by being assigned to haircut category III. These entities become eligible as credit claim debtors and subject to the climate factor under the Eurosystem collateral framework.
4. Phase-Out of Temporary Measures: Credit claims that do not meet all requirements of the general collateral framework but carry a COVID-19-related public sector guarantee will remain eligible as collateral only until the end of 2026.
These guidelines will be published in all 24 official European Union languages in the Official Journal of the European Union.
Who May Be Affected
Financial institutions, non-financial corporate groups, financial subsidiaries, non-euro area public sector issuers, and counterparty entities participating in Eurosystem credit operations.
Cross-Border Context
Directly impacts cross-border counterparties and foreign issuers pledging assets or operating within the Eurosystem monetary framework.
What to check next
- Publication of Guidelines ECB/2026/26 and ECB/2026/27 in all 24 official EU languages in the Official Journal of the European Union.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.