|Printable version||E-mail this to a friend|
ECB reviews its risk control framework for collateral assets
To maintain adequate risk protection, the European Central Bank (ECB) regularly adjusts its collateral eligibility rules and risk control measures applied when accepting collateral in Eurosystem monetary policy operations.
The Governing Council of the ECB has decided on a number of measures to improve the overall consistency of the framework. The Governing Council decided in particular, with effect from 1 January 2017, to:
1. Update the haircuts for marketable and non-marketable assets;
2. Introduce graduated haircuts for eligible asset-backed securities (ABS) based on their Weighted Average Life (WAL) as calculated from expected cash flows
Moreover, the Governing Council decided to:
3. Introduce graduated haircuts depending on remaining maturity also for floating-rate assets, which are currently assigned a flat haircut irrespective of their maturities
4. Adjust the risk control measures for retained covered bonds with extendible maturities (e.g. soft bullet and conditional pass-through covered bonds) to take into account the additional risk which results from the use of such securities by the issuer itself and to ensure a level playing field between securities with comparable risks
As regards the first two measures, the new haircut schedules are defined in the new Guidelines ECB/2016/32 and ECB/2016/33 (amending Guideline ECB/2015/35 and Guideline ECB/2014/31, relating to the general and the temporary collateral framework, respectively). These guidelines have become available on the ECB’s website. As regards the last two measures, they will become applicable at a date to be announced in the second half of 2017.
For media queries, please contact William Lelieveldt, tel.: +49 69 1344 7316.
Latest News from
ESAs warn on money laundering &terrorist financing risks affecting the EU financial sector22/02/2017 14:25:00
The 3 European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) have published a Joint Opinion addressed to the EC on the risks of money laundering and terrorist financing affecting the EU's financial sector.
EC welcomes new rules to prevent tax avoidance through non-EU countries22/02/2017 13:10:00
The EC welcomes the agreement reached by ECOFIN on new rules to help prevent tax avoidance via non-EU countries, which will prohibit multinational companies from escaping corporate tax by exploiting differences between the tax systems of Member States and those of non-EU countries (so-called 'hybrid mismatches').
Council sets its priorities for the 2018 EU budget22/02/2017 11:48:00
The Council considers that the budget for 2018 should provide adequate resources to continue supporting the traditional & evolving priorities within the Union, namely the recovery of the European economy, to address humanitarian & security challenges both within & outside the EU borders and to honour commitments already made under the current and previous programming periods.
Energy consumption in 201521/02/2017 15:20:00
Energy consumption in the EU below its 1990 level, but EU dependency on fossil fuel imports on the rise.
Consumer protection in the digital age: Council agrees to strengthen EU-wide cooperation21/02/2017 14:20:00
The Council agreed on a general approach to strengthen cooperation between national authorities responsible for the enforcement of consumer protection laws. The objective of the proposal is to modernise cooperation mechanisms to further reduce the harm caused to consumers by cross-border infringements to EU consumer law.