Decision No. 2017-01 of July 21, 2017 amending Decision No. 2015-01 of April 22, 2015 on the implementation of monetary policy and intraday credit of the Bank of France

Decision No. 2017-01 of July 21, 2017 amending Decision No. 2015-01 of April 22, 2015 on the implementation of monetary policy and intraday credit of the Bank of France

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, 12.1, 14.3 and 18.2,
• ECB Recommendation (EU) 2015/510 of 19 December 2014 on the implementation of the monetary policy framework of the Eurosystem (ECB/2014/60), as amended,
• 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 on the implementation of monetary policy and intraday credit of the Bank of France, as amended,

HAS DECIDED:

Article 1
Modifications

The Governor of the Bank of France Decision No. 2015-01 of 22 April 2015 on the implementation of monetary policy and intraday credit of the Bank of France (hereinafter "the Decision") is amended as follows:

1. In Article 2, the following point 84 bis is inserted:

"84 bis) 'liquidation structure', an entity, whether private or public, a) the main objective of which is the gradual disposal of its assets and the cessation of its activities; or b) which is an asset management or disposal entity established to support the restructuring or resolution of the financial sector, including asset management structures resulting from a resolution measure involving the use of an asset separation instrument in accordance with Article 26 of Regulation (EU) No 806/2014 of the European Parliament and of the Council1 or national legislation transposing Article 42 of Directive 2014/59/EU of the European Parliament and of the Council2 .

1 Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a single resolution mechanism and a single resolution fund, and amending Regulation (EU) No 1093/2010 (OJ L 225, 30.7.2014, p. 1). 2 Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU of the European Parliament and of the Council and Regulations (EU) No 1093/2010 and (EU) No 648/2012 of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190)."

2. In Article 55 bis, paragraph 5 is replaced by the following text:

"5. A liquidation structure does not meet the conditions required for access to Eurosystem monetary policy operations, unless it was admitted before 22 March 2017, as an eligible counterparty, to participate in Eurosystem monetary policy operations. In such a case, it remains eligible until 31 December 2021, subject to the condition that its access to Eurosystem credit operations, as defined in Article 2, point 66), is limited to the average level of its use of Eurosystem credit operations during the twelve-month period preceding 22 March 2017, with the possibility of calculating and applying this limitation jointly for several liquidation structures belonging to the same group, where applicable. This liquidation structure no longer meets the conditions required for access to Eurosystem monetary policy operations thereafter."

3. In Article 158, the following paragraph 3 bis is inserted:

"3 bis. With regard to liquidation structures not considered eligible in accordance with Article 55 bis, paragraph 5, the Eurosystem may, on the basis of the prudential principle, suspend, limit or remove access to operations for counterparties that transfer liquidity from the Eurosystem to an ineligible liquidation structure."

Article 2
Publication and entry into force

1. This Decision shall be published in the Official Publication Register of the Bank of France.
2. It shall enter into force on 21 July 2017.
3. This Decision shall apply 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, 21 July 2017

The Governor of the Bank of France
François VILLEROY DE GALHAU