Q1: As regards PSPP and public sector PEPP securities lending against cash collateral, how is the overall limit set?
When the Eurosystem started to accept cash as collateral in December 2016, the Governing Council decided on a limit of €50 billion, taking into account the expected usage of cash as collateral and its effect on excess liquidity. This limit was increased to €75 billion in March 2018, to €150 billion in November 2021 and to €250 billion in November 2022.
The full Q&A is available at https://www.ecb.europa.eu/mopo/implement/app/lending/html/securities-lending-faq.en.html