Decision No. 2026-02 Amending Decision No. 2016-02 on Valuation Haircuts Applied in the Implementation of the Eurosystem Monetary Policy

Decision No. 2026-02 of March 25, 2026, amending Decision No. 2016-02 of January 25, 2016, regarding the valuation haircuts applied during the implementation of the Eurosystem's monetary policy

THE GOVERNOR OF THE BANK OF FRANCE

Having regard to:

• the Treaty on the Functioning of the European Union, and in particular Article 127(1) and Article 127(2), first indent,
• the Statute of the European System of Central Banks and of the European Central Bank (ECB), and in particular Articles 3.1, first indent, 9.2, 12.1, 14.3, 18.2, and 20, first subparagraph,
• ECB Guideline (EU) 2015/510 of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60), as amended,
• ECB Guideline (EU) 2016/65 of 18 November 2015 on haircuts applied in the context of the Eurosystem monetary policy framework (ECB/2015/35), as amended,
• ECB Guideline (EU) 2024/5 of 8 February 2024 amending ECB Guideline (EU) 2016/65 of 18 November 2015 on haircuts applied in the context of the Eurosystem monetary policy framework (ECB/2024/5),
• ECB Guideline (EU) 2024/690 of 22 January 2026 amending ECB Guideline (EU) 2016/65 of 18 November 2015 on haircuts applied in the context of the Eurosystem monetary policy framework (ECB/2024/5),
• the Monetary Agreement between the European Union and the Principality of Monaco of 26 December 2001, as amended on 29 November 2011,
• the Monetary and Financial Code, and in particular Article L. 142-8,
• the Governor of the Bank of France Decision No. 2015-01 of 22 April 2015 regarding the implementation of the Bank of France's monetary policy and intraday credit, as amended,
• the Governor of the Bank of France Decision No. 2016-02 of 25 January 2016 regarding the valuation haircuts applied during the implementation of the Eurosystem's monetary policy, as amended.

HEREBY DECIDES:

Article 1
Modifications

Decision No. 2016-02 of 25 January 2016 regarding the valuation haircuts applied during the implementation of the Eurosystem's monetary policy (hereinafter "the Decision") is amended as follows:

1. The following point a bis) is added to Article 4:
   "a bis) Negotiable assets denominated in sterling, yen, or United States dollars are subject to an additional reduced valuation: a) by 16% for assets denominated in sterling or United States dollars; and b) by 26% for assets denominated in yen;";

2. Article 5 is amended as follows:
   a) In paragraph 2, point e) is replaced by the following text:
   "e) The haircut applied to a private credit giving rise to more than one type of interest payment is solely a function of the interest payments during the remaining life of the private credit. If there is more than one type of interest payment during the remaining life of the private credit, the remaining payments to be made are treated as fixed-rate payments, the maturity taken into account for the haircut being the remaining maturity of the private credit. If the private credit contract contains options allowing the type of interest payment to be modified during the remaining life of the private credit, or if it provides for modifications to the type of interest payment during the remaining life of the private credit that are subject to the occurrence of a predefined event, the remaining payments to be made are also treated as fixed-rate payments, the maturity taken into account for the haircut being the remaining maturity of the private credit."; b) Paragraphs 5 and 7 are deleted;

3. The Annex is amended in accordance with the Annex to this Decision.

Article 2
Entry into Force and Implementation

1. This Decision is published in the Official Publication Register of the Bank of France.
2. It enters into force on March 30, 2026.
3. This Decision is applicable in the overseas departments and regions, in Saint-Barthélemy, in Saint-Martin, in Saint-Pierre-and-Miquelon, as well as in the Principality of Monaco.

Done in Paris, on March 25, 2026

The Governor of the Bank of France
François VILLEROY de GALHAU

ANNEX

In the Annex, Table 2 bis is replaced by the following table:

"TABLE 2 BIS: HAIRCUT RATES (IN %) APPLIED TO ELIGIBLE MARKETABLE ASSETS OF HAIRCUT CATEGORY V (in %) Category V Credit Quality Weighted Average Life () Haircut Ratings 1 and 2 [0 -1 ) 4.0 [1 -3 ) 5.0 [3 -5 ) 7.0 [5 -7 ) 9.0 [7 -10 ) 12.0 [10 -15 ) 18.0 [15 -30 ) 20.0 [30 -∞) 22.0 Rating 3 [0 -1 ) 7.0 [1 -3 ) 10.0 [3 -5 ) 13.0 [5 -7 ) 15.0 [7 -10 ) 18.0 [10 -15 ) 27.0 [15 -30 ) 31.0 [30 -∞) 33.0 () That is, [0-1) weighted average life less than one year, [1-3) weighted average life equal to or greater than one year but less than three years, etc. ".