# Commission Delegated Regulation (EU) 2017/390 of 11 November 2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on certain prudential requirements for central securities depositories and designated credit institutions offering banking-type ancillary services (Text with EEA relevance), Article 24: Credit limits

Extent: E+W+S+N.I.

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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Source: https://www.legislation.gov.uk/eur/2017/390/article/24 (the official version)
Page: https://openlegislation.uk/eu-regulation-2017-390/article-24
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.