Under the Extended Liquidity Facility (ELF), the SNB may grant liquidity support against sufficient collateral to banks that meet the eligibility criteria. The ELF can be used by banks to obtain liquidity if they deem their own liquidity buffers no longer sufficient.

For the ELF, the SNB has defined a standardised and scalable process that will enable participating banks to quickly obtain liquidity support against collateral as necessary. The ELF is scheduled to go into operation at the beginning of 2027 and will contribute to the stability of the banking system.

Up to a certain limit (ELF limit), eligible banks can obtain liquidity from the SNB against sufficient collateral in a simplified process. Neither an application nor formal confirmation of the bank's solvency is required for drawing liquidity up to the level of the ELF limit. The ELF limit is set on a bank-specific basis. It is based on the collateral prepared by a bank as per the periodic reports to be submitted. The calculation of the ELF limit is described in the ELF Instruction Sheet.

To draw liquidity above the ELF limit, a formal application must be submitted to the SNB's Governing Board, which decides whether to grant liquidity support. Together with the application, the bank must submit a formal confirmation of its solvency.

In order to be able to obtain liquidity support quickly if needed, banks must have made the necessary preparations for the drawing of liquidity and for transferring collateral, and must have signed the relevant contractual documents. Details on the necessary preparatory work are set out in the ELF Instruction Sheet and in the other documents of the ELF contract documentation. The operational readiness of the banks and the other parties involved is regularly tested.

The liquidity granted by the SNB as part of its liquidity support must be fully covered by sufficient collateral at all times. The SNB accepts the following as collateral for liquidity support under the ELF: mortgage-backed credit claims (liquidity against mortgage collateral, LAMC) and a broad range of securities (liquidity against securities collateral, LASC). Banks have the option to participate in the ELF with one or with both categories of collateral.

The SNB involves group companies within SIX Group Ltd in handling the provision and management of collateral, in particular SIX Terravis Ltd and SIX SIS Ltd.

In the case of systemically important banks, and on an institution-specific basis, further categories of collateral may be deemed eligible and/or different operational prerequisites may be imposed for the delivery of collateral.