Collateral for Eurosystem – The role of the Bank of Slovenia as custodian in CCBM

In the cross-border use of eligible collateral via the CCBM, the Bank of Slovenia performs a custodial role for foreign NCBs in the Eurosystem (the Bank of Slovenia has the role of correspondent central bank or CCB, while the foreign NCBs have the role of home central bank or HCB). These are cases when a Eurosystem counterparty not established in Slovenia wishes to use financial assets located in Slovenia as collateral for claims of the HCB.

The Bank of Slovenia performs a custodial role for debt securities issued at KDD, and for bank loans entered in the register of financial assets at the Bank of Slovenia.

1. Bank of Slovenia’s CCB role for securities issued at KDD

Each Eurosystem NCB is assigned a KID code by KDD that serves as its identification in the registration of collateral for the HCB in the securities register at KDD. 
The Bank of Slovenia’s tasks deriving from its CCB role are as follows:  

• opening and managing securities accounts on behalf of and for the account of HCBs, 
• receiving returns on securities pledged as collateral for the account of HCBs, 
• informing HCBs with regard to appropriate delivery of securities as collateral, withdrawal of collateral, tax treatment and issuers’ measures, 
• informing foreign HCBs on a daily basis of the balance of securities pledged as collateral for the account of HCBs. 

The registration of a maximal lien in favour of a Eurosystem NCB and the transfer of securities to the NCB’s account administered within the framework of the Bank of Slovenia’s membership of KDD must be executed in accordance with KDD’s rules and regulations and the Bank of Slovenia’s additional operational requirements.

KDD rules and regulations

CCBM operational features in use of Slovenian marketable assets (see Regulation)

2. Bank of Slovenia’s CCB role for bank loans entered in the Bank of Slovenia register

The Bank of Slovenia’s tasks deriving from its CCB role are as follows:  

• establishing and terminating rights in favour of HCBs on bank loans, 
• administering bank loans entered in the Bank of Slovenia register, 
• receiving any returns on bank loans pledged as collateral for the account of HCBs and forwarding them to HCBs, 
• informing foreign HCBs with regard to appropriate delivery of bank loans as collateral, withdrawal of collateral, and tax treatment, 
• informing foreign HCBs on a daily basis of the value of bank loans pledged as collateral for the account of HCBs. 

A maximal lien in favour of the HCB or the assignment of the claim to the HCB may be established in the register of financial assets in accordance with the following Bank of Slovenia regulations: 

• User manual for cross-border use of credit claims entered in the register of assets at the Bank of Slovenia
• Terms and conditions of Bank of Slovenia when acting as correspondent central bank (CCB) and as assisting central bank (ACB) for credit claims
• Regulation on the establishment and management of an assets register

3. Bank of Slovenia’s ACB role for bank loans

The Bank of Slovenia offers assistance to foreign NCBs when the creditor, debtor or guarantor is established in Slovenia, but the financial assets and the registered office of the counterparty that wishes to use the financial assets are not in Slovenia (the Bank of Slovenia acts as the assisting central bank or ACB).
The Bank of Slovenia performs the role of ACB for bank loans only.
The Bank of Slovenia’s tasks deriving from its ACB role are as follows:

• assisting HCBs in communicating with the creditor, the debtor or the guarantor, 
• helping to verify the eligibility of the creditor, the debtor or the guarantor, 
• assisting in the regulation and forwarding of returns on bank loans. 

The Bank of Slovenia performs its ACB role in accordance with the Terms and conditions of Bank of Slovenia when acting as correspondent central bank (CCB) and as assisting central bank (ACB) for credit claims.