ECB announces changes to the Eurosystem collateral framework to foster greater harmonisation
The European Central Bank (ECB) announced today a set of changes to the Eurosystem collateral framework. These changes aim to foster greater harmonisation across the euro area, improve the efficiency of the collateral management process, and enhance the resilience of the Eurosystem’s monetary policy operations.
The main changes include:
- The introduction of a single list of eligible collateral for all Eurosystem credit operations. This list will be based on the current eligibility criteria applied by the national central banks (NCBs) and will be reviewed regularly.
- The harmonisation of the haircuts applied to collateral. Haircuts are discounts applied to the market value of collateral to reflect its riskiness. The new harmonised haircuts will be based on the current haircuts applied by the NCBs and will be reviewed regularly.
- The introduction of a new collateral valuation framework. This framework will be based on the current valuation methods used by the NCBs and will be reviewed regularly.
- The introduction of a new collateral management system. This system will be used to manage the Eurosystem’s collateral operations and will be based on the current systems used by the NCBs.
The changes to the Eurosystem collateral framework will be implemented in two phases. The first phase will be implemented on 20 November 2024 and will include the introduction of the single list of eligible collateral and the harmonisation of the haircuts. The second phase will be implemented on 20 November 2025 and will include the introduction of the new collateral valuation framework and the new collateral management system.
The ECB believes that the changes to the Eurosystem collateral framework will improve the efficiency of the collateral management process, enhance the resilience of the Eurosystem’s monetary policy operations, and foster greater harmonisation across the euro area.
For more information, please contact the ECB’s Press Office at +49 69 1344 7455 or [email protected]
ECB announces changes to the Eurosystem collateral framework to foster greater harmonisation
The AI has provided us with the news.
I’ve asked Google Gemini the following question, and here’s its response.
Bacno de España – News and events a new article on 2024-11-29 16:01 titled “ECB announces changes to the Eurosystem collateral framework to foster greater harmonisation”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
125