Since the terms of its access to Eurosystem monetary policy credit operations will have been frozen and perhaps even further restricted, it will not be able to meet its increased liquidity needs through this means. What will the bank do? It is likely to seek recourse to ELA from its national central bank in order to meet these additional liquidity needs.
So if the entity is assessed as “solvent” by the competent supervisory authority and it has sufficient clearly identified eligible collateral it will most probably receive ELA from its national central bank. Let me pause a moment on these two concepts.