Participation in Monetary Policy Instruments
Participation in open market operations
Banka Slovenije counterparties access the open market operations via the eAvkcije online app. Access is via the Banka Slovenije website, where identification is by means of a qualified digital certificate. In the eAvkcije app counterparties can review the announcements and results of operations, enter their bids, and receive confirmations of transactions. Detailed information for users of the eAvkcije online app is provided in the eAvkcije user guide (in Slovene only).
A calendar of open market operations is published for the year ahead in the Eurosystem.
Use of standing facilities and credit lines in the TARGET system
Banka Slovenije counterparties access the marginal lending facility and the deposit facility on their own initiative. Access is granted within the framework of the TARGET-Slovenija payment system. Counterparties each hold four cash accounts in TARGET: the main cash account (MCA), the dedicated cash account for RTGS (RTGS DCA), the dedicated cash account for TIPS (TIPS DCA) and the dedicated cash account for T2S (T2S DCA).
Counterparties can also manage their liquidity needs arising during the working day by drawing down intraday credit that Banka Slovenije offers in the form of a credit line in the MCA. The credit line represents the maximum overdrawn balance in the counterparty’s MCA during the day. The counterparty must provide eligible collateral for the credit line.
If the overall balance of all the counterparty’s TARGET accounts at Banka Slovenije is negative at the end of the business day, the sum is automatically converted into the marginal lending facility. The repayment of the marginal lending facility and repayment of the deposit facility together with the accrued interest are made automatically on the next business day when the TARGET system opens.
The detailed procedures are set out in the User Manual for Counterparties and Banka Slovenije in Connection with Intraday Credit and Standing Facility Procedures. The procedures set out in the manual are part of the General terms and conditions for participation in the TARGET-Slovenija system and the General terms and conditions on the implementation of the monetary policy framework, which set out the legal basis for the standing facilities and the credit line (intraday credit).
Securities lending of holdings under the public sector purchase programme (PSPP) and the pandemic emergency purchase programme (PEPP)
Banka Slovenije allows market participants to borrow bonds purchased under the PSPP and the PEPP via its agent Deutsche Bank AG and via custody bank Euroclear Bank SA/NV’s Securities Lending and Borrowing Programme (SLB) for the purpose of mitigating fails.
This agency lending is undertaken according to the following principles:
The lending programme is aimed at primary dealers and market-makers in Slovenian government bonds and other market participants designated by Banka Slovenije provided that they have signed the necessary legal documentation with the agent.
The securities lending is conducted against collateral in the form of eligible securities or cash. The collateral is subject to a margin/haircut in line with market practice.
The minimum fee is at least 5 basis points for loans secured by securities collateral. For loans secured by cash collateral, the rate may not exceed the deposit facility rate minus 20 basis points.
The following lending terms are available: an open basis, a term of up to one week, and a term of three months, the latter two with the option of rolling over the transactions.
Banka Slovenije has set certain borrowing limits in place with regard to the total share of lending of a particular security to a single counterparty, the total amount of lending to a single counterparty, the total amount of lending, and the maximum amount for a single transaction. There are also limits on the total amount of lending with a term of three months, and the total amount on lending against cash.
Eligible securities must satisfy the following criteria: they must be senior, non-convertible, unstructured debt securities with a rating of BBB-/Baa3 or higher, issued by central governments, agencies, supranational institutions and other financial or non-financial issuers based in the euro area (certain non-euro area issuers are also eligible), and compliant with Banka Slovenije’s risk management framework.
Any further questions in connection with securities lending can be addressed to [email protected] or to the agency securities lending department of the agent Deutsche Bank AG, via [email protected], or by phone to +44 20 7545 1233.
Fails mitigation lending is undertaken according to the rules set by the custody bank Euroclear Bank SA/NV. For further information, please contact them directly.
A list of the bonds from the PSPP and the PEPP that are available for lending is published here.
Submission of data on reserve requirements
In line with the reserve maintenance period calendar, Banka Slovenije sends each bank information about its calculated reserve requirements via B2B at least five business days before the beginning of the reserve maintenance period. The calculation is made on the basis of data from banks reported within the ECB’s general framework of monetary and financial statistics. This data can be modified on account of reported revisions to balance sheet items that are reported subsequently by the bank. The calculation is finalised on Banka Slovenije’s final business day before the beginning of the reserve maintenance period, once the data has been confirmed by the bank.
Banks can monitor their fulfilment of reserve requirements in the CLM module in the TARGET system.
The reserve requirements are set out by the ECB Regulation on the application of minimum reserves, with additional aspects for Slovenian banks covered by the General terms and conditions on the implementation of the monetary policy framework.