ECB to integrate non-financial credit claim portfolios into collateral framework by 2027

The Governing Council of the European Central Bank (ECB) has decided to permanently integrate portfolios of non-financial corporate (NFC) credit claims into its general collateral framework. This follows the initial announcement in November 2024 to phase out temporary collateral easing measures introduced during the crisis.

Portfolios of NFC credit claims consist of loans granted by banks to non-financial firms, grouped as packages for liquidity purposes. The eligibility criteria and risk control framework for these portfolios will be harmonized with those for individual credit claims, with some exceptions for credit quality steps, provided diversification and risk limits are met.

Until technical implementation is completed, existing NFC credit claim portfolios will remain eligible under the temporary framework. Credit claims with COVID-19-related public sector guarantees will be eligible until the end of 2026, unless they meet the current general framework requirements. National central banks may decide to terminate their temporary frameworks earlier and will communicate relevant details to affected counterparties.

This decision simplifies collateral eligibility across the euro area by applying a single list of eligible collateral, reducing complexity and ensuring a level playing field for credit institutions. The technical implementation is planned for November 2027 at the earliest.