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Article 24 - Credit limits

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.

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