Under EU law, the ECB may suspend counterparties if they fail to fulfill their obligations vis-à-vis the ECB. These include in particular – violations of the tender rules or the rules for bilateral transactions. For example, if a counterparty is unable to supply sufficient eligible assets to collateralize the amount of liquidity allotted or to make available the amount allotted to it in a liquidity-absorbing operation; – breaches of obligations relating to the use of eligible assets. This includes cases where a counterparty uses underlying assets that are ineligible or no longer eligible; – breaches related to access to the marginal lending facility. For example, a counterparty with a debit balance on the settlement account at the end of the day does not fulfill the access conditions for this facility. – Cf. in detail ECB: The Single Monetary Policy in Stage Three, pp. 11 f.
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