Decision No. 2025-01 of 16 April 2025 Amending Decision No. 2015-01 of 22 April 2015 on the Implementation of Monetary Policy and Intraday Credit of the Banque de France

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Decision No. 2025-01 of 16 April 2025 amending Decision No. 2015-01 of 22 April 2015 on the implementation of monetary policy and intraday credit of the Banque de France

THE GOVERNOR OF THE BANQUE DE 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) 2024/3132 of 14 November 2024 repealing Guideline (EU) 2024/3130 amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework (ECB/2024/23) and amending Guideline (EU) 2015/510 (ECB/2014/60) (ECB/2024/37),
• ECB Guideline (EU) 2024/3129 of 13 August 2024 on the management of collateral in Eurosystem credit operations (ECB/2024/22),
• the Monetary Agreement between the European Union and the Principality of Monaco of 29 November 2011,
• the Monetary and Financial Code, and in particular Article L. 142-8,
• the Decision of the Governor of the Banque de France No. 2015-01 of 22 April 2015 on the implementation of monetary policy and intraday credit of the Banque de France, as amended,
• the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025 concerning the management of collateral in Eurosystem credit operations.

HEREBY DECIDES

Article 1
Modifications

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

1. In Article 1, paragraph 1 is amended as follows:
   "This Decision implements the uniform rules concerning the single monetary policy of the Eurosystem as provided for by Guideline ECB/2014/60 of 19 December 2014 and specified in the operational annexes of the Banque de France referenced below. The rules relating to the mobilisation and management of collateral are set out in the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025 concerning the management of collateral in Eurosystem credit operations.";

2. Article 2 is amended as follows:
   a) point 8) is deleted; b) point 9) is replaced by the following text:
   "9) 'margin call', a procedure relating to the application of variation margins whereby, when the value of the assets mobilised as collateral by a counterparty, measured at regular intervals, falls below a certain level (insufficient collateral), the Eurosystem requires the counterparty to provide additional eligible assets or cash;"; c) point 21) is replaced by the following text:
   "'TARGET account', a TARGET account as defined in the Governor's Decision No. 2022-05 of 6 July 2022 on the harmonised conditions for participation in the new generation transeuropean real-time gross settlement automated express transfer system (TARGET) as amended (hereinafter the 'TARGET Decision');" d) point 22) is deleted; e) point 24 bis) is deleted; f) point 56 bis) is deleted; g) point 56 ter) is replaced by the following text:
   "56 ter) 'eligible link', an eligible link as defined in Article 2, point 26) of the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025;"; h) point 56 quater) is deleted; i) the following point 57 bis) is inserted:
   "57 bis) 'common reserve', a common reserve as defined in Article 2, point 44) of the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025;"; j) point 87) is deleted; k) point 88) is replaced by the following text:
   "88) 'eligible securities settlement system', an eligible securities settlement system as defined in Article 2, point 27) of the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025;"; l) point 85) is deleted; m) point 91 bis) is deleted; n) in point 101), point c) is replaced by the following text:
   "c) debt instruments backed by claims on individuals (retail mortgage-backed debt instrument – RMBD) issued by entities established in the Member State of the NCB of its home country;"; o) in point 102), point d) is deleted;

3. In Article 15, paragraph 1, point c) is replaced by the following text:
   "c) where applicable concerning point b), constitute appropriate collateral through corresponding margin calls, by means of sufficient eligible assets or cash. The mobilisation of cash as collateral may also be initiated by the Banque de France in accordance with Article 11 of the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025.";

4. In Article 20, paragraph 1 is replaced by the following text:
   "1. The loan granted under the facility is for twenty-four hours. The loan is repaid on the following day on which TARGET is open."

5. In Article 49, paragraph 2 is replaced by the following text:
   "2. Payment orders related to participation in open market operations intended to provide liquidity or to the use of the marginal lending facility shall only be settled following the final transfer of the eligible assets provided as collateral for the operation."

6. In Article 50, paragraph 1 is replaced by the following text:

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"1. The Eurosystem endeavours to settle transactions related to its open market operations simultaneously, in all Member States whose currency is the euro, with all counterparties that have provided sufficient eligible assets as collateral, in accordance with the settlement procedures specified in Article 9 of the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025. However, due to operational constraints and technical characteristics (for example, securities settlement systems), the time of day at which the settlement of open market operations takes place may vary across different Member States whose currency is the euro."

7. In Article 51, paragraph 1 is replaced by the following text:
   "1. The Eurosystem endeavours to settle open market operations carried out using normal tender procedures on the first day following the transaction day during which TARGET-BANQUE DE FRANCE is open."

8. Article 53 is amended as follows:
   a) paragraph 1 is replaced by the following text:
   "1. Without prejudice to the conditions defined in this Chapter and in the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025, the contractual or regulatory provisions applied by the Banque de France or the ECB to the particular monetary policy instrument may include supplementary provisions concerning settlement." b) paragraph 2 is replaced by the following text:
   "2. End-of-day procedures are specified in the documentation relating to the TARGET-BANQUE DE FRANCE framework, in the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025, and in the technical documentation annexed to the access agreement for monetary policy and intraday credit operations of the Banque de France."

9. In Article 55 bis, paragraph 2 is replaced by the following text:
   "2. If the prudential supervisory authority of the establishment does not provide this prudential information to the Banque de France and the ECB, the Banque de France or the ECB may require the establishment to provide this information. When this information is provided directly by an establishment, it must also submit an assessment of the information performed by the competent prudential supervisory authority. A further certificate by an external auditor may also be required."

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10. Article 58 is amended as follows:
a) paragraph 1 is replaced by the following text:
"1. The Eurosystem applies a single regime for eligible assets, common to all credit operations of the Eurosystem defined in this Decision, and manages these assets in accordance with the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025." b) paragraph 4 is replaced by the following text:
"4. When counterparties provide eligible assets as collateral, the Banque de France uses the common reserve to hold these assets in accordance with Article 3 of the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025."

11. In Article 61, paragraph 1 is replaced by the following text:
    "1. The ECB publishes an updated list of eligible marketable assets on its website, in accordance with the methods specified thereon, and updates it each day on which TARGET is operational. Marketable assets appearing on the list of eligible marketable assets become eligible for use in the context of Eurosystem credit operations upon their publication on the list. By way of exception to this rule, in the specific case of debt instruments with a value settlement on the day of issue, the Eurosystem may grant eligibility from the date of issue."

12. In Article 62, the following paragraph 4 is added:
    "4. In order to be eligible, debt instruments have a quantity expressed in nominal value."

13. Article 66 is amended as follows:
    a) paragraph 1 is replaced by the following text:
    "1. In order to be eligible, debt instruments are issued in the EEA by a CSD operating i) an eligible securities settlement system or ii) a securities settlement system with an eligible link to an eligible securities settlement system." b) paragraph 2 is deleted; c) in paragraph 3, point a) is replaced by the following text:
    "a) International debt instruments represented by a global bearer certificate are issued in the form of new global notes (NGN) and deposited with a common safekeeper, which is an ICSD or a CSD operating i) an eligible securities settlement system or ii) a securities settlement system with an eligible link to an eligible securities settlement system. This condition does not apply to international debt instruments represented by a global bearer certificate issued in the form of classical global notes before 1 January 2007, nor to continuous fungible issuances of these certificates having the same ISIN number, regardless of the date of the continuous issuance."

14. Article 67 is amended as follows:
    a) paragraph 1 is replaced by the following text:
    "1. The settlement procedures applicable to the mobilisation of marketable assets as collateral are specified in the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025. In order to be eligible, debt instruments are transferable by book entry and are settled under the law of a Member State whose currency is the euro, such that registration formalities and the enforcement of collateral are subject to the legislation of a Member State whose currency is the euro." b) paragraph 1 bis is deleted; c) paragraph 2 is deleted;

15. Article 70 is amended as follows:
    a) paragraphs 1 and 2 are replaced by the following text:
    "1. In order to be eligible, debt instruments are issued by an issuer established in the EEA or in a G10 country not belonging to the EEA, subject to the exceptions set out in this Article, paragraphs 3 bis to 6, and in Article 81 bis, paragraph 4. For marketable assets originating from more than one issuer, this requirement applies to each issuer.

16. In order to be eligible, the guarantors of debt instruments are established in the EEA, unless a guarantee is not necessary to determine the credit quality requirements applicable to specific debt instruments, subject to the exceptions set out in paragraphs 3 bis and 4. The possibility of using an ECAI rating concerning the guarantor to determine compliance with the credit quality requirements applicable to specific debt instruments is provided for in Article 84."
    b) paragraph 3 is deleted;

17. Article 86 is replaced by the following text:
    "Article 86
    Local currency and foreign currency ratings

For the purposes of ECAI ratings concerning the issuer and the guarantor, foreign currency ratings are acceptable. If the asset is denominated in the issuer's national currency, the issuer's local currency rating is also acceptable. If the asset is denominated in the guarantor's national currency, the guarantor's local currency rating is also acceptable."

17. Article 87 is amended as follows:
    a) paragraph 1 is replaced by the following text:
    "1. In the absence of an appropriate credit assessment provided by an accepted ECAI concerning the issuance, the issuer, or the guarantor, as would be applicable under Article 84, point a) or b), the Eurosystem establishes an implicit credit assessment of the marketable assets (excluding asset-backed securities), in accordance with the rules defined in paragraph 2. This implicit assessment must meet the Eurosystem's credit quality requirements." b) paragraph 3 is deleted;

18. Article 98 is replaced by the following text:
    "Article 98
    Processing procedures

Private claims are processed in accordance with the Banque de France's procedures as defined in the relevant annexes to this Decision as well as in the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025."

19. Article 109 is amended as follows:
    a) paragraph 1 is replaced by the following text:
    "1. The Eurosystem assesses the credit quality of private claims based on the solvency of the debtors or guarantors communicated by credit assessment systems or sources as determined in accordance with Article 110." b) paragraph 3 is replaced by the following text:
    "3. It is incumbent on counterparties to ensure that they use the most recent credit quality assessment provided by the sources or credit assessment systems, as determined in accordance with Article 110, for the debtors or guarantors of private claims mobilised as collateral."

20. Article 110 is amended as follows:
    a) the title is replaced by the following text:

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"Determination of the credit assessment system or source"; b) the following paragraph -1 is inserted:
"-1. Internal credit assessment systems (ICAS) of NCBs accepted by the Eurosystem in accordance with the general eligibility criteria set out in Part Four, Title V, are used as the primary source of credit assessment for the assessment of the credit quality of debtors and guarantors of private claims mobilised as collateral when a credit assessment performed by an accepted ICAS, from the Banque de France or any other NCB, is available." c) paragraphs 1 to 3 are replaced by the following text:
"1. Counterparties mobilising private claims as collateral may select an additional credit assessment system or source from among the other credit assessment sources accepted by the Eurosystem in accordance with the general eligibility criteria set out in Part Four, Title V. The system or source of credit assessment selected under this paragraph is designated as the counterparty's secondary credit assessment system or source. The secondary credit assessment system or source may only be used when no credit assessment of the relevant debtor or guarantor, respectively, performed by an accepted ICAS of an NCB is available.
2. The Banque de France may authorise its counterparties to use more than two credit assessment systems or sources, provided that they submit a reasoned request to the Banque de France arguing that the coverage provided by the primary and secondary credit assessment sources or systems is insufficient.
3. In cases where a counterparty is authorised to use more than two credit assessment systems or sources in accordance with paragraph 2, the counterparty's secondary credit assessment system or source is deemed to be the one whose credit quality assessment covers the largest number of debtors of the private claims mobilised as collateral among the credit assessment systems or sources selected by the counterparty in accordance with paragraphs 1 and 2, in addition to the primary credit assessment source. If credit assessments are available from several accepted credit assessment systems or sources for the counterparty, the credit assessment used to determine the eligibility of the debtor or guarantor, respectively, and the haircuts applicable to the private claim concerned is, in accordance with paragraphs 1 to 3:
a) the primary credit assessment source or, failing that, b) the secondary credit assessment system or source when selected by the counterparty, or, failing that, c) the additional credit assessment systems or sources referred to in paragraph 2 when selected by the counterparty."

d) paragraph 7 is replaced by the following text:
"7. If the counterparty has opted for an ECAI as a source of credit assessment, it is possible to use an ECAI rating concerning the debtor or the guarantor. If several ECAI ratings concerning the debtor and/or the guarantor are available for the same private claim, the best credit assessment provided by the ECAI among all accepted ECAs is used, in accordance with paragraphs 1 to 3."

21. Article 111 is amended as follows:
    a) in paragraph 1, point a) is replaced by the following text:
    "a) If there is a credit assessment established by the systems or sources determined in accordance with Article 110, the Eurosystem uses it to determine whether the public sector entity constituting the debtor or guarantor meets the Eurosystem's credit quality requirements applicable to non-marketable assets set out in Article 108." b) paragraph 2 is replaced by the following text:
    "2. The Eurosystem assesses the credit quality of private claims whose debtors or guarantors are non-financial corporations as follows: the credit assessment provided by the systems or sources determined in accordance with Article 110 meets the Eurosystem's credit quality requirements applicable to non-marketable assets set out in Article 108."

22. In Article 112 bis, paragraphs 1 and 2 are replaced by the following text:
    "1. The assessment of ABS by one of the credit assessment sources accepted by the Eurosystem in accordance with the general eligibility criteria set out in Part Four, Title V, is not required.

23. Each underlying private claim of the ABS hedging portfolio is subject to a credit assessment performed by one of the credit assessment sources accepted by the Eurosystem in accordance with the general eligibility criteria set out in Part Four, Title V. Furthermore, the credit assessment system or source used must be the same as the credit assessment system or source chosen by the originator in accordance with Article 110. The rules concerning the Eurosystem's credit quality requirements applicable to underlying private claims, set out in Section 1, apply."

24. Article 112 BDF3 is amended as follows:
    a) paragraph 1 is replaced by the following text:

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"The conditions for the mobilisation of private claims whose contract is subject to French law are specified in the access agreement for monetary policy and intraday credit operations of the Banque de France." b) paragraph 3 is replaced by the following text:
"The mobilising establishment must comply with the choices of file media described in the technical documentation annexed to the access agreement for monetary policy and intraday credit operations of the Banque de France (Annex A) and carry out file submission tests. These submissions must be secured in the manner provided by the Banque de France and communicated to counterparties."

24. Article 112 BDF4 is deleted;

25. In Article 118, paragraph 1, point b) is deleted;

26. In Article 128, paragraph 1, point b) is replaced by the following text:
    "b) variation margins (market valuation):
    the Eurosystem requires that the market value, adjusted for a haircut, of eligible assets be maintained throughout the duration of repurchase operations intended to provide liquidity. If the value of eligible assets, measured daily, falls below a certain level (insufficient collateral), the Banque de France requires the counterparty to provide additional assets or cash through a margin call in accordance with Article 136. Conversely, if the value of eligible assets, after revaluation, exceeds a certain amount, the Banque de France may return the excess cash;"

27. In Article 134, point d) is deleted;

28. Article 136 is amended as follows:
    a) paragraph 1 is replaced by the following text:
    "1. The assets mobilised as collateral for Eurosystem credit operations are subject to daily valuation by the NCBs, in accordance with the rules defined in Articles 134 and 135." b) paragraph 2 is replaced by the following text:
    "2. If, after valuation and haircuts, the mobilised assets do not meet the requirements arising from the calculations performed on that day, margin calls are made in accordance with the procedures set out in Article 11 of the Decision of the Governor of the Banque de France No. 2025-02 of 16 April 2025. If the value of the eligible assets mobilised as collateral by a counterparty exceeds, after their revaluation, the amount due by the counterparty plus, where applicable, the variation margin

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