http://www.legislation.gov.uk/eudn/2014/34/article/4Decision of the European Central Bank of 29 July 2014 on measures relating to targeted longer-term refinancing operations (ECB/2014/34) (2014/541/EU)Decision of the European Central Bank of 29 July 2014 on measures relating to targeted longer-term refinancing operations (ECB/2014/34) (2014/541/EU)2020-12-11King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02014D0034-20160503texttext/xmlen2016-05-03 Limits on borrowing Article 4 1 Participation in TLTROs on an individual basis or as the lead institution of a TLTRO group shall be subject to borrowing limits. The borrowing limits applicable to an individual participant shall be calculated on the basis of the loan data in respect of outstanding amounts of eligible loans and eligible net lending of the individual participant. The borrowing limits applicable to the lead institution of a TLTRO group shall be calculated on the basis of the aggregated loan data in respect of outstanding amounts of eligible loans and eligible net lending of all members of the TLTRO group. Where changes to the composition of a TLTRO group have been recognised in accordance with paragraph 5 or 6 of Article 3, all subsequent calculations of borrowing limits shall be performed on the basis of balance sheet data of the new composition of the TLTRO group. The borrowing limits applicable to each participant in respect of each TLTRO shall be considered to represent a maximum bid limit for each such participant and the rules applicable to bids exceeding the maximum bid limit, as laid down in Section 5.1.4 of Annex I to Guideline ECB/2011/14, shall apply. 2 In the two successive TLTROs to be conducted in September and December 2014, each participant shall be entitled to borrow an amount that cumulatively does not exceed an initial TLTRO borrowing allowance. Each participant's initial TLTRO borrowing allowance shall equal 7 % of their total outstanding amount of eligible loans on 30 April 2014. Annex I outlines the relevant technical calculations. Any unused initial TLTRO allowance shall not be available in any subsequent TLTRO. 3 In respect of each subsequent TLTRO conducted quarterly during the period from March 2015 to June 2016, each participant shall be entitled to an additional TLTRO borrowing allowance. Each participant's additional TLTRO borrowing allowance shall equal the higher number of (i) zero and (ii) three times that participant's cumulative eligible net lending provided between 1 May 2014 and the respective allotment reference date, in excess of the benchmark determined in accordance with paragraph 4 below, less any amount previously borrowed in TLTROs conducted in the period from March 2015. Annex I outlines the relevant technical calculations. 4 A participant's benchmark shall be determined on the basis of eligible net lending in the 12 month period from 1 May 2013 to 30 April 2014 (the ‘benchmark reference period’), as follows: a For participants that report positive eligible net lending in the benchmark reference period or if the participant was established after 1 May 2013, the applicable benchmark shall be zero. b For participants that report negative eligible net lending in the benchmark reference period, the benchmark shall be calculated by determining the average monthly eligible net lending of each participant in the benchmark reference period and multiplying this average figure by the number of months elapsed between 30 April 2014 and the end of the allotment reference month. This formula shall apply for allotment reference months up to and including April 2015. Thereafter, the benchmark shall remain unchanged at the value reached on 30 April 2015. Annex I outlines the relevant technical calculations.