Press release Eurosystem introduces cash collateral for PSPP securities lending facilities
The Governing Council has decided that Eurosystem central banks will have the possibility to also accept cash as collateral in their PSPP securities lending (SL) facilities without having to reinvest it in a cash-neutral manner.
The following Eurosystem members will make securities lending available also against cash collateral by 15 December 2016: the ECB, Nationale Bank van België/Banque Nationale de Belgique, Deutsche Bundesbank, Central Bank of Ireland, Banco de España, Banque de France, and De Nederlandsche Bank.
The overall limit for securities lending against cash collateral is set at €50 billion for the Eurosystem. To avoid unduly curtailing normal repo market activity, the cash collateral option will be offered at a rate equal to the lower of the rate of the deposit facility minus 30 basis points (i.e. currently -70 basis points) and the prevailing market repo rate.
The introduction of cash as collateral in the context of PSPP securities lending is intended to enhance the effectiveness of the SL framework, thereby supporting the smooth implementation of the PSPP as well as the euro area repo market liquidity and functioning. This technical amendment does not represent any change in the monetary policy stance of the Eurosystem. It will be reviewed in light of operational needs and the level of excess liquidity.
For media queries, please contact William Lelieveldt, tel.: +49 69 1344 7316.
Latest News from
Council agrees on emergency measures to reduce energy prices03/10/2022 16:33:00
EU energy ministers recently (30 September 2022) reached a political agreement on a proposal for a Council Regulation to address high energy prices.
Guidelines on general visa issuance in relation to Russian applicants and controls of Russian citizens at the external borders03/10/2022 15:25:00
The Commission recently (30 September 2022) presented updated guidelines to Member States on visa procedures as well as on border controls for Russian citizens at the EU's external borders.
Message of President Charles Michel on Russia's illegal annexation of Ukrainian regions03/10/2022 14:33:00
Message of President Charles Michel on Russia's illegal annexation of Ukrainian regions (30 September 2022).
Ethiopia: Statement by Commissioner Lenarčič on the humanitarian situation and International Humanitarian Law in northern Ethiopia03/10/2022 13:25:00
Ethiopia: Statement given recently (30 September 2022) by Commissioner Lenarčič on the humanitarian situation and International Humanitarian Law in northern Ethiopia.
Antitrust: Commission upgrades eLeniency tool to grant companies online access to leniency and settlement documents03/10/2022 12:10:00
The European Commission has upgraded its online platform “eLeniency” to ensure that companies who are parties to cartel and antitrust proceedings can easily and securely access documents online.
State aid: Commission approves aid to support the resolution of the Polish Getin Noble Bank S.A.03/10/2022 11:33:00
The European Commission has approved, under EU State aid rules, several support measures in the context of the resolution of the Polish Getin Noble Bank S.A.
Council and Parliament reach provisional political agreement on access to Union waters, extending the current rules for fishermen for another ten years30/09/2022 15:25:00
The Czech Presidency of the Council of the European Union and the European Parliament reached a provisional political agreement as regards the regime for access of fishing vessels to member states’ territorial waters.
Ensuring radiation protection: Commission refers LATVIA to Court to guarantee citizens' protection from ionising radiation-exposure risks30/09/2022 14:33:00
The Commission is taking legal steps to ensure the protection of citizens, workers and patients against the dangers arising from exposure to ionizing radiation.
Investor citizenship scheme: Commission refers MALTA to the Court of Justice30/09/2022 13:25:00
The European Commission yesterday decided to refer Malta to the Court of Justice of the European Union for its investor citizenship scheme, also referred to as the ‘golden passports'.
Human rights: EU increases support to the protection of human rights defenders worldwide30/09/2022 12:38:00
Human rights are increasingly under threat worldwide. Against this global backdrop, reconfirming the European Union's strong support to human rights, fundamental freedoms and democracy, and their defenders worldwide, Commissioner Jutta Urpilainen yesterday signed €30 million, a substantial increase, for the new phase of the EU Human Rights Defenders Mechanism, in the presence of civil society organisations and human rights defenders, for the period 2022–2027.