Commission Delegated Regulation (EU) 2017/390Show full title

Article 24 Credit limits

For the purposes of managing intraday credit risk, and where setting the credit limits to an individual borrowing participant at the group level, a CSD-banking service provider shall comply with all of the following:

(a)

assess the creditworthiness of the borrowing participant based on a methodology that does not exclusively rely on external opinions;

(b)

verify the compliance of collateral and other equivalent financial resources provided by a participant to cover intraday credit exposures, with the requirements set out in Articles 9 and 15, respectively;

(c)

set the credit limits to a borrowing participant based on the multiple relationships that the CSD-banking service provider has with the borrowing participant, including where the CSD-banking service provider provides more than one banking-type ancillary service among those referred to in Section C of the Annex to Regulation (EU) No 909/2014 to the same participant;

(d)

take into account the level of qualifying liquid resources in accordance with Article 34;

(e)

review the credit limits to a borrowing participant with the view to ensuring both of the following:

(i)

where the creditworthiness of a borrowing participant decreases, that the credit limits are reviewed or reduced;

(ii)

where the value of collateral provided by a borrowing participant decreases, that the credit availability is reduced.

(f)

review the credit lines granted to borrowing participants at least annually based on their actual usage of credit;

(g)

ensure that the amount of overnight credit exposures is integrated in the usage of the credit limit granted to the participant;

(h)

ensure that the amount of overnight credit not yet reimbursed is included in the intraday exposures of the next day and is capped by the credit limit.