With the launch of the expanded asset purchase programme (APP), the Bank of Italy – like the ECB and the other euro-area national central banks – has intensified its securities lending activities. Securities lending programmes are offered by all the main central banks, including those outside of the Eurosystem, and are an essential complement to financial asset purchase programmes. Securities lending has proven useful in satisfying the need of market operators to hold specific securities on a temporary basis, to limit settlement fails, alleviate tensions stemming from a lack of securities, and to boost the market's overall liquidity. The service is provided by the Bank of Italy through the main international central securities depositories, Clearstream and Euroclear, which operate within the framework of strategic guidelines drawn up by the Bank of Italy itself and which are consistent with those applied by the Eurosystem. The transactions are negotiated at market prices.
Having taken account of market conditions, the Bank of Italy can opt to lend the securities purchased under the PSPP, CSPP, SMP and CBPP programmes. Currently the Bank is actively involved in lending government securities, corporate bonds, and covered bank bonds. As a rule, the list of ISIN codes of the securities available for lending is updated each Monday (see the link below). The Bank of Italy is committed to ensuring the smooth provision of this service with a view to promoting the proper functioning of the market.
On the second Monday of the month following the reference month, the ECB publishes the aggregate data referring to the total monthly average of securities lent by the Eurosystem and to the cash pledged as collateral.