Regulatory Alerts2022-01-06
Decision No. 2022-01 of January 6, 2022 amending Decision No. 2020-02 of April 20, 2020 on additional temporary measures concerning Banque de France refinancing operations and collateral eligibility
The Governor of the Banque de France issued Decision No. 2022-01 to amend the eligibility criteria for refinancing operations, specifically updating credit quality thresholds and introducing a residual guarantee rate calculation for restructured loans that have returned to soundness. The decision establishes precise formulas and discount grids in Annex BDF bis to determine the applicable haircuts for French state-guaranteed loans based on their FIBEN rating, probability of default, and remaining maturity. These measures, which entered into force on January 11, 2022, ensure that collateral eligibility aligns with the ECB's framework while accounting for the specific characteristics of loans supported by the French state guarantee scheme.
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