Application of the derogation provided for in Article 419(2)(b) of Regulation (EU) No 575/2013
Article 5
1. An institution shall take all reasonable steps to fulfil the liquidity coverage requirement set out in Article 412 of Regulation (EU) No 575/2013 before applying the derogation provided for in Article 419(2)(b) of that Regulation. 2. An institution shall obtain from the central bank in respect of the currency with constraints on the availability of liquid assets a credit line which complies with the following conditions: (a) the credit line specifies that the institution has a legally binding entitlement to access the credit facilities and that entitlement is set out in a written agreement; (b) following the decision to provide a credit line, access to the credit facilities is not subject to a credit decision by the central bank; (c) the credit facilities can be drawn on by the institution without delay and no later than 1 day after giving notice to the central bank; (d) the credit line is at all times available for a period exceeding the 30 day-period of the liquidity coverage requirement specified in Article 412(1) of Regulation (EU) No 575/2013. 3. An institution shall fully post collateral at the central bank, which, after being subject to any haircut applied by the central bank, shall at all times be equal to or greater than the maximum amount that may be drawn on the credit line.