ECB changes collateral rules in effort to shield bank funding

Assets below investment grade will be accepted by ECB as collateral until September 2021

ECB 2017

The European Central Bank’s governing council decided on April 22 to accept instruments that fall below its minimum credit quality requirements as collateral for its refinancing operations. 

Marketable assets and issuers of these instruments falling below BBB – which was the previous minimum requirement – will now be accepted as collateral by the ECB. One observer welcomed the move as a bold effort to preserve eurozone banks’ access to finance, but said it was not the most radical step the bank

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.