Rules update 5 August 2019

The Bank of Finland has updated its rules on monetary policy operations and collateral. The rules now include the ECB’s amendments to the Guideline on the implementation of the Eurosystem monetary policy framework (General Documentation Guideline) (ECB/2019/11), the Guideline on the valuation haircuts applied in the implementation of the Eurosystem monetary policy framework (ECB/2019/12) and the Guideline on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral (ECB/2019/13).

In future, covered bonds will be eligible for own-use as collateral on condition that they have an external credit assessment institution (ECAI) rating.

The definitions of agencies as issuers or guarantors of debt instruments will be harmonised by streamlining the criteria used for recognised agencies in the Eurosystem collateral framework and agencies eligible for the public sector purchase programme (PSPP).

The Eurosystem incorporates the transparency requirements of the EU Securitisation Regulation (Regulation (EU) No 2017/2402) into its collateral framework. The use of third-party rating tool (RT) providers as one of the accepted credit assessment sources will be phased out.

In addition, the amended Guidelines contain several adjustments to the valuation haircuts and accepted interest rate structures of credit claims.

The changes will be valid as of 5 August 2019, except for the change concerning the own-use of covered bonds, for which the application date is 1 February 2020.

Bank of Finland rules for counterparties and customers