Assets and Valuation Haircuts Structure

 

Levels of valuation haircuts applied to assets underlying National Bank of Slovakia monetary policy operations
 
  Eligible assets Valuation Valuation haircuts
Central government
debt instruments		 NBS instruments Commercial banks
instruments
Liquidity
category I 1)		 Treasury Bills (SPP);
Government Bonds (SD);		 NBS Bills (PP NBS)   Market price
(alternative theoretical
price defined by NBS)		 Valid since 1. may 2004
Valid since 31. march2006
Valid since 3. november 2008
Liquidity
category II 2)		          
Liquidity
category III 3)		     Covered bonds Market price
(alternative theoretical
price defined by NBS)		 Valid since 3. november 2008
Liquidity
category IV 2)		          

Annotation:

  1. The Bank Board of NBS (meeting on 04.28.2004) set up the validity of valuation haircuts.
  2. The Bank Board of NBS makes decision on eligibility of assets and valuation haircuts on individual basis.
  3. The Bank Board of the NBS (meeting on 10. 28. 2008) approved acceptance of covered bonds as eligible assets in the implementation of monetary policy operations since 11.03. 2008.