( ) Concerning the second ECAI assessment , credit assessment at issuance refers to the credit assessment when first issued or published by the ECAI .'

A credit assessment from the system or source selected by the counterparty exists and is used to establish whether the public sector debtor or guarantor meets the credit quality threshold . ( ii ) In the absence of a credit assessment under ( i ) , an ECAI credit assessment of the debtor or guarantor is used ( 32 ) .

This implicit credit assessment has to meet the Eurosystem credit quality threshold .

This implicit assessment has to meet the Eurosystem credit quality threshold .

( ii ) In the absence of a credit assessment under ( i ) , an ECAI credit assessment of the debtor or guarantor is used .

Class 2 Allocated a credit assessment one credit quality step ( 1 ) below the ECAI credit assessment of the central government ofthe country in which it is established Treated like private sector issuers or debtors

If a credit assessment from the system or source selected by the counterparty exists but is below the credit quality threshold , the debtor or guarantor is ineligible .

35 See footnote 28 in this chapter .

If no credit assessment is available to establish the credit standards , the debtor or guarantor is considered ineligible .

36 See footnote 32 in this chapter . 44

ECAI credit assessment At least one credit assessment from an accepted ECAI ( as set out in Section 6.3.4 ) for the issue ( or , in its absence , for the issuer ) must comply with the Eurosystem 's credit quality threshold ( 25 ) ( 26 ) .

An implicit credit assessment for debtors or guarantors belonging to classes 1 and 2 is derived from the ECAI credit assessment of the central government of the country where the debtor or guarantor is established .

Internal rating based ( IRB ) system a credit quality assessment source provided for in the Eurosystem credit assessment framework ( ECAF ) that comprises the internal systems of those counterparties whose credit assessments may be used by credit institutions for the determination of risk weight exposures according to the Capital Requirements Directive .

Internal ratings based ( IRB ) system a credit quality assessment source provided for in the Eurosystem credit assessment framework ( ECAF ) that comprises the internal systems of those counterparties whose credit assessments may be used by credit institutions for the determination of risk weight exposures according to the Capital Requirements Directive .

The asset must be deemed of high credit quality by the national central bank which has included it in its tier two list ( which could include a guarantee of a euro area guarantor which is deemed financially sound by the national central bank which has included the asset in its tier two list ) .

Credit standards

The creditworthiness is assessed using ECAF rules for credit claims

The asset must meet high credit standards .

Moreover , the adopted text removes the reference to the most favourable credit quality required for these units ( 1 ) .

An implicit credit assessment for issuers or guarantors belonging to classes 1 and 2 is derived from the ECAI credit assessment of the central government of the country where the issuer or guarantor is established .

An implicit credit assessment for issuers or guarantors belonging to classes 1 and 2 is derived from the ECAI credit assessment of the central government of the country where the issuer or guarantor is established . This implicit credit assessment has to meet the Eurosystem credit quality threshold .

Non financial corporate debtors or guarantors If the source selected by the counterparty provides a credit assessment equal to or exceeding the credit quality threshold , the debtor or guarantor is eligible ( 34 ) ( 35 ) .

34 In the case of marketable assets issued by non financial corporations but not rated by an accepted ECAI , this requirement applies to the credit assessment of issuers .

To ensure that the two asset classes comply with the same credit standards , a Eurosystem credit assessment framework ( ECAF ) has been set up , which relies on different credit assessment sources .

Guarantees In the absence of an ( acceptable ) ECAI credit assessment of the issuer , high credit standards can be established on the basis of guarantees provided by financially sound guarantors .

Reverse transaction an operation whereby the national central bank buys or sells assets under a repurchase agreement or conducts credit operations against collateral . RTGS ( real time gross settlement ) system a settlement system in which processing and settlement take place on an order by order basis ( without netting ) in real time ( continuously ) .

Safe custody account a securities account managed by the central bank on which credit institutions can place securities deemed suitable to back central bank operations . Securities settlement system ( SSS ) a system which permits the holding and transfer of securities or other financial assets , either free of payment ( FOP ) or against payment ( delivery versus payment ) .

( 34 ) If the counterparty has chosen an ECAI as a credit assessment source , it may use the first best rule ( see footnote 25 in this chapter ) .

( 35 ) For specific credit assessment systems , the credit quality threshold can be adjusted following the performance monitoring process ( see Section 6.3.5 ) .

A broad assessment of underlying trends in money and credit growth is particularly important at present given recent financial market developments .

A jurisdiction specific credit assessment framework for these debt instruments will be specified in the applicable national documentation by the national central banks .

The Eurosystem 's minimum requirements for credit quality thresholds , as specified in the Eurosystem credit assessment framework rules for marketable assets in Section 6.3.2 of the General Documentation , shall be suspended in accordance with Articles 2 and 3 .

A broad assessment of underlying trends in money and credit growth is particularly important at present given recent financial market developments .

Poor s recently to downgrade its credit rating.

11 They must meet high credit standards .

With regard to RMBDs , the Eurosystem 's benchmark for establishing its mini mum requirement for high credit standards is defined in terms of a credit assessment of credit quality step 2 in the Eurosystem 's harmonised rating scale ( single A ) .

The counterparties settlement accounts with the national central banks may be used as reserve accounts . Reserve base the sum of the balance sheet items which constitute the basis for calculating the reserve requirement of a credit institution .

NON MARKETABLE RETAIL MORTGAGE BACKED DEBT INSTRUMENTS The high credit standards for non marketable RMBDs must meet the Eurosystem 's credit quality threshold .

The credit ratings agency Standard amp

Additionally , in the assessment of the credit standard , the Eurosystem takes into account institutional criteria and features guaranteeing similar protection for the instrument holder such as guarantees .

3 different alternatives need to be examined , such as accepting the credit score ( or rating ) coming from an Internal Ratings Based ( IRB ) Approach5 or , as regards central banks , an in house assessment or outsourcing the task of credit assessment .

Minimum size threshold at the time of submission of the credit claim . Between 1 January 2007 and 31 December 2011 for domestic use choice of the NCB

When the collateral considered is default risk free ( e.g. government bonds ) , collateralisation is a way to transform credit risk into market risk ( managed with risk controls as described above ) as the defaultrisky counterparty provides a default risk free asset to guarantee its position . Even when the collateral itself can be defaultable ( as with corporate bonds ) , the credit risk is strongly mitigated if the credit quality of the bonds is sufficiently high .

If a credit assessment from the system or source selected by the counterparty ( or from an ECAI in case ( ii ) for public sector debtors or guarantors ) exists but is below the credit quality threshold , the debtor or guarantor is ineligible .

If a credit assessment from the system or source selected by the counterparty ( or from an ECAI in case ( ii ) for public sector debtors or guarantors ) exists but is below the credit quality threshold , the debtor or guarantor is ineligible .