Securities lending of holdings under the expanded asset purchase programme (APP)

Updated on 8 December 2016

Since 2 April 2015, securities purchased under the public sector purchase programme (PSPP) have been made available for securities lending in a decentralised manner by Eurosystem central banks.

In addition, several Eurosystem central banks make their holdings under the three covered bond purchase programmes (CBPP, CBPP2 and CBPP3) available for securities lending.

As of 18 July 2016, holdings under the corporate sector purchase programme (CSPP) have also been made available for securities lending by the purchasing national central banks (Nationale Bank van België/Banque nationale de Belgique, Deutsche Bundesbank, Banco de España, Banque de France, Banca d’Italia and Suomen Pankki-Finlands Bank).

As of 8 December 2016, Eurosystem central banks have the possibility to also accept cash as collateral in their PSPP securities lending facilities without having to reinvest it in a cash-neutral manner.

Further details on the APP securities lending arrangements of the ECB and the Eurosystem national central banks can be found on their respective websites (see below).

General APP securities lending framework

The aim of securities lending is to support bond and repo market liquidity without unduly curtailing normal repo market activity. The Eurosystem is primarily targeting market participants with market-making obligations.

Lending channels

Eurosystem central banks use various lending channels, taking into account the diversity of the existing securities lending arrangements and market characteristics across jurisdictions.

These channels may include bilateral securities lending and lending relying on specialised securities lending agents or on the lending infrastructure of international central securities depositories (ICSDs). The Eurosystem endeavours to offer effective and accessible securities lending arrangements.

Eurosystem central banks also make their APP holdings available for so-called fails mitigation lending programmes of international or domestic central securities depositories, or ensure that comparable arrangements are in place in their jurisdiction.


Lending of APP securities holdings takes place against securities or cash collateral. Lending against securities as collateral means that repo transactions are accompanied by fully offsetting reverse repo transactions for the same value date, and typically with the same counterparty. For securities lending against cash collateral such offsetting transactions are not needed, but this variant is subject to an overall limit which is set at €50 billion for the Eurosystem.

Operational and risk parameters

The individual Eurosystem central banks determine the securities lending modalities of their respective APP holdings, including collateral eligibility, pricing, haircut, term and counterparty eligibility, so as to support market liquidity. This allows Eurosystem central banks to reflect domestic infrastructures and market practices.

Effectiveness of operations

The Eurosystem APP securities lending activities are monitored closely so as to ensure the ongoing effectiveness of the arrangements.

Further details on securities lending arrangements of Eurosystem members
Eurosystem member APP CSPP
(purchasing NCBs)
European Central Bank (EN)  
Nationale Bank van België/Banque Nationale de Belgique (EN) (same link)
Deutsche Bundesbank (EN) (same link)
Eesti Pank (EN)  
Central Bank of Ireland (EN)  
Bank of Greece (EN), (EL)  
Banco de España (EN), (ES) (same links)
Banque de France (FR) (same link)
Banca d'Italia (EN), (IT) (EN), (IT)
Central Bank of Cyprus (EN), (EL)  
Latvijas Banka (EN)  
Lietuvos bankas (EN), (LT)  
Central Bank of Malta (EN)  
De Nederlandsche Bank (EN)  
Oesterreichische Nationalbank (EN), (DE)  
Banco de Portugal (EN), (PT)  
Banka Slovenije (EN)  
Národná banka Slovenska (EN)  
Suomen Pankki (EN) (same link)