The Swiss National Bank has published further detail on the framework for its Extended Liquidity Facility (ELF), which will provide liquidity support to banks domiciled in Switzerland. The framework is designed as a standardised, scalable process enabling participating banks to obtain liquidity against collateral when needed. Under the ELF, eligible collateral will include mortgages and securities. The process will be tested with pilot banks and with SIX Terravis and SIX SIS until mid-2026. The SNB has also released core documentation covering the new liquidity framework, preparations and eligibility criteria including calculation of a bank-specific ELF limit, a declaration of participation as the first step toward ELF capability, collateral eligibility and haircuts with separate conditions for liquidity against mortgage collateral (LAMC) and liquidity against securities collateral (LASC), and loan terms including interest rate and maturity. The complete ELF documentation, including contracts and detailed instructions, is expected to be made available to eligible banks in summer 2026. The ELF is scheduled to go into operation at the beginning of 2027.
Swiss National Bank 2026-02-19
Swiss National Bank details framework for Extended Liquidity Facility ahead of 2027 launch
The Swiss National Bank has detailed its Extended Liquidity Facility (ELF) framework, offering liquidity support to Swiss banks against collateral. The ELF will include mortgages and securities as eligible collateral and will be tested with pilot banks and SIX entities until mid-2026. Full documentation and contracts are anticipated by summer 2026, with the ELF set to launch in early 2027.