The European Central Bank’s Governing Council extended the ECB’s euro liquidity repo lines with eight non-euro area central banks until 31 January 2027 and did not object to a Supervisory Board proposal to update the 2025 Supervisory Examination Programme (SEP) for on-site inspections and internal model investigations at significant institutions and outsourcing service providers. The liquidity line extension covers Magyar Nemzeti Bank, Banca Națională a României, Bank of Albania, Andorran Financial Authority, National Bank of the Republic of North Macedonia, Central Bank of the Republic of San Marino, Central Bank of Montenegro and Central Bank of the Republic of Kosovo, and was taken under the euro liquidity line framework adopted in 2023. The updated on-site SEP is based on SSM supervisory priorities for 2025-2027. Other decisions included taking note of the main findings from the 2024 climate stress test on the Eurosystem’s balance sheet and approving amendments to the T2 Currency Participation Agreement to make the TARGET Analytical Environment a standard feature for signatories. The Council also adopted ECB opinions on flood insurance and on payment system access and a new exemption from the cash rule, approved the ECB’s audited annual accounts for 2024 and recommended external auditors for the financial years 2025 to 2029. Separately, it extended the investigation phases for the ESCB Integrated Reporting Framework and ESCB and SSM Common Data Management projects until the end of September 2025 and noted the jury composition for the new euro banknote design contest. Repo line availability now runs to 31 January 2027, while the data and reporting project investigation phases have been extended until the end of September 2025. The climate stress test findings will feed into the Eurosystem’s climate-related financial disclosures, and the banknote design contest jury is scheduled to start work in early 2025 to prepare a shortlist for the Governing Council’s final design selection.
European Central Bank 2025-02-21
European Central Bank extends euro liquidity repo lines to eight non-euro area central banks until January 2027 and updates 2025 supervisory inspection programme
The European Central Bank (ECB) extended euro liquidity repo lines with eight non-euro area central banks until 31 January 2027 and updated the 2025 Supervisory Examination Programme for significant institutions. The ECB noted findings from the 2024 climate stress test, approved amendments to the T2 Currency Participation Agreement, and extended investigation phases for data projects until September 2025. Additionally, the ECB adopted opinions on flood insurance and payment system access, approved its 2024 audited accounts, and recommended external auditors for 2025-2029.