ECB amends monetary policy implementation guidelines
The European Central Bank has published amendments to its guidelines on monetary policy implementation. These changes, applicable from 30 March 2026, include new collateral rules and access for resolved banks.
New path for resolved banks and collateral
The European Central Bank has introduced new provisions allowing entities under an open bank resolution scheme to regain access to Eurosystem monetary policy operations.
This reinstatement is conditional on meeting specific requirements, such as supervisory confirmation of compliance with regulatory minimum own funds.
Furthermore, the ECB is continuing to phase out temporary collateral easing measures.
Certain temporary asset types will be integrated into the general collateral framework, while others will be discontinued entirely.
These changes, announced on 29 November 2024, aim to enhance the harmonisation and robustness of the Eurosystem's collateral framework, ensuring its resilience and effectiveness in supporting monetary policy operations.
The amendments are applicable as of 30 March 2026.
Climate factor and global debt instruments
A new climate factor will be introduced to protect the Eurosystem against potential declines in collateral value from adverse climate-related transition shocks.
This measure, announced on 29 July 2025, becomes applicable from 15 June 2026. The guidelines also update rules for international debt instruments.
Those issued with international central securities depositories in fully dematerialised form, or not relying on physical global notes, will now be eligible as Eurosystem collateral if they meet other criteria.
This reflects recent market infrastructure developments and aligns with evolving issuance practices, complementing existing rules for physical global notes.
The Eurosystem can verify these instruments do not pose material risks to its collateral rights.
Necessary evolution, complex implications
These amendments represent a necessary evolution of the Eurosystem's operational framework, adapting to new market realities and emerging risks.
While enhancing resilience, the increased complexity of collateral eligibility and resolution access could pose implementation challenges for some counterparties.
The introduction of a climate factor, though prudent, signals a growing regulatory burden that will require significant adjustments from financial institutions.