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:

1. (a)

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

2. (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;

3. (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;

4. (d)

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

5. (e)

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

   1. (i)

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

   2. (ii)

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

6. (f)

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

7. (g)

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

8. (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.