Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)

Market operations

Introduction of a climate factor in the Eurosystem’s collateral framework to address climate-related transition uncertainties

On 23 July 2025 the Governing Council decided to introduce a “climate factor” in the Eurosystem’s collateral framework to better manage financial risks related to the climate crisis. This climate factor, which could reduce the value assigned to eligible marketable assets pledged as collateral depending on the asset’s sensitivity to transition shocks, will complement the Eurosystem’s existing risk management toolbox by considering forward-looking climate scenario analyses and will therefore improve the resilience of the Eurosystem’s implementation of monetary policy. The calibration of the climate factor will preserve adequate collateral availability. More detailed information is provided in a press release, which is available on the ECB’s website together with some related FAQs.

Macroprudential policy and financial stability

Follow-up on Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures

On 31 July 2025 the Governing Council approved the ECB’s response on the European Systemic Risk Board’s Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures. Similar to the assessment made in 2023, the reply emphasises that the ECB is fully compliant with the part of the Recommendation that is relevant to the ECB, noting that most follow-up questions are addressed to authorities that have already undertaken macroprudential actions and are, therefore, not applicable to the ECB.

Market infrastructure and payments

Review of the conditions for access by prefunded ancillary systems to TARGET

On 31 July 2025 the Governing Council took note of an assessment by the Market Infrastructure and Payments Committee that there was no need to adjust the conditions for access by prefunded ancillary systems to TARGET as set out in the Eurosystem policy adopted by the Governing Council, and approved the proposal that this policy would remain unchanged at this point in time. The prefunding policy, which defines the conditions under which ancillary systems – i.e. financial market infrastructures participating in TARGET – can use prefunding in central bank money, aims to mitigate liquidity and credit risks and facilitate settlement outside central bank real-time gross settlement operating hours, while preventing a negative impact on the overall efficiency of the financial market and the ability of the Eurosystem to fulfil its statutory tasks. The Governing Council also mandated the Market Infrastructure Board (MIB) to continue monitoring the use of prefunding in TARGET on an annual basis.

Amendments to the Guideline on a new-generation Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET)

On 31 July 2025 the Governing Council adopted Guideline ECB/2025/28 amending Guideline (EU) 2022/912 on a new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET). The amendments to the Guideline reflect the evolution of Eurosystem policy in several areas of relevance to TARGET services, in particular on access by non-bank payment service providers to TARGET and on the non-discretionary credit facility for euro area central counterparties. They also include editorial and technical revisions. To complement these amendments, the Governing Council also adopted Decision (EU) 2025/1734 on safeguards in relation to access by central counterparties to Eurosystem overnight credit in TARGET (ECB/2025/29), which specifies the requirements for euro area central counterparties to access the aforementioned non-discretionary credit facility.

Comprehensive organisational review of TARGET Services governance

On 26 August 2025 the Governing Council took note of a review of the organisational model of the governance of TARGET Services, which it had requested in December 2021 when considering the action plan prepared by the MIB to address the findings and recommendations concerning TARGET Services incidents in 2020. The review contains a number of measures to be implemented to further improve the governance of TARGET Services. The Governing Council mandated the MIB, together with the providing central banks, to report back to the Governing Council in the course of 2027 on the implementation of the proposed improvement measures.

Nomination of T2S CSD Steering Group observers

On 9 September 2025 the Governing Council nominated six observers in the T2S CSD Steering Group (CSG) to serve as T2S user representatives. The observers, proposed by the MIB and nominated by the Governing Council for a renewable term of two years based on applications from the European Banking Federation (EBF), the European Savings and Retail Banking Group (ESBG), the European Association of Co-operative Banks (EACB), the Association for Financial Markets in Europe (AFME) and the European Association of CCP Clearing Houses (EACH), represent CBOE Clear Europe N.V., Citibank Europe PLC, Danske Bank, Deutsche Bank, Deutsche WertpapierService Bank and Eurex Clearing in the T2S CSG. The list of private institutions participating in the T2S CSG as Observers is available on the ECB's website.