Stand By Credit Facilities as Liquid Assets

In Article 416(1) of Regulation (EU) No. 575/2013 states: “Institutions shall report the following as liquid assets unless excluded by paragraph 2 and only if the liquid assets fulfil the conditions in paragraph 3: … e) standby credit facilities granted by central banks within the scope of monetary policy to the extent that these facilities are not collateralised by liquid assets and excluding emergency liquidity assistance;” Which real world examples exist for standby credit facilities, which are not collateralized by liquid assets, but at the same time fulfil the prerequisite of paragraph 3? Would the unused amount for potential ECB tender transactions which are not collateralised by liquid assets, as defined in the CRR, qualify for a standby credit facility?

Institutions pledge assets under ECB tender operations. That means that those assets have a special depository upon which the ECB can draw in order to collateralise those transactions. However, although those assets could eventually be drawn in the case of a transaction, usually the pool of assets exceeds the used amount. The unused amount effectively constitutes a facility, which can be used at any time. As the ECB has other criteria for the definition of suitable assets, there may be assets that are not LCR eligible but ECB eligible.