ECB attempts to increase collateral availability
22 June 2012 Frankfurt
Image: Shutterstock
On 20 June 2012 the Governing Council of the European Central Bank (ECB) decided on additional measures to better the access of the banking sector to Eurosystem operations in order to further support the provision of credit to households and non-financial corporations.
The Governing Council has reduced the rating threshold and amended the eligibility requirements for certain asset-backed securities (ABSs), aiming to broaden the scope of the measures to increase collateral availability, which were introduced on 8 December last year.
In addition to the ABSs that are already eligible for use as collateral in Eurosystem operations, the Eurosystem will consider auto loan, leasing and consumer finance ABSs, and residential mortgage-backed securities as eligible.
The Governing Council has reduced the rating threshold and amended the eligibility requirements for certain asset-backed securities (ABSs), aiming to broaden the scope of the measures to increase collateral availability, which were introduced on 8 December last year.
In addition to the ABSs that are already eligible for use as collateral in Eurosystem operations, the Eurosystem will consider auto loan, leasing and consumer finance ABSs, and residential mortgage-backed securities as eligible.
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