ECB amends monetary policy implementation rules, phases out easing
The European Central Bank has published amendments to its guidelines on monetary policy implementation, applicable from March 30, 2026. The changes include phasing out temporary collateral easing measures and introducing a climate factor.
Phasing out easing, reinstating access
The European Central Bank has amended its guidelines to allow conditional reinstatement of access to Eurosystem monetary policy operations for entities subject to an open bank resolution scheme.
This provision requires supervisory confirmation that the counterparty complies with regulatory minimum own funds.
This change aims to support financial stability during resolution.
Additionally, the ECB is phasing out temporary collateral easing measures.
Following an announcement on 29 November 2024, some temporary asset types will be integrated into the general collateral framework to enhance harmonisation, while others will be discontinued as collateral.
These updates, applicable from 30 March 2026, streamline the Eurosystem's collateral framework and reduce reliance on exceptional measures.
Climate factor and digital debt
A climate factor will be introduced to protect the Eurosystem against potential declines in collateral value from adverse climate-related transition shocks.
Announced on 29 July 2025, this measure becomes applicable on 15 June 2026, integrating climate considerations into collateral risk management.
Furthermore, international debt instruments issued in fully dematerialised form or without physical global notes will now be eligible as Eurosystem collateral, provided they meet other criteria.
The Eurosystem will verify such instruments do not pose material risks.
This update reflects recent market infrastructure developments and aligns with evolving issuance practices by central securities depositories.
Adapting to new realities
These amendments modernize the Eurosystem's operational framework, addressing emerging risks and market infrastructure evolution.
The integration of climate factors and digital debt eligibility signals a forward-looking approach to financial stability.
This move towards standard policy implementation reflects confidence in market conditions.