Brussels, 31/08/2015 (Agence Europe) - On Monday 31 August, the ECB announced a revision of the guidelines on bank assets which are eligible to be used as collateral for the granting of 'central bank liquidity' in the framework of its monetary policy.
To take account of the European legislation on banking union, the European institution will take account of information on capital, leverage and liquidity ratios of financial institutions.
A new class of eligible debt instruments has been brought in, namely 'non-marketable debt instruments backed by eligible credit claims' (DECCs). Initially, only the domestic use of these instruments is envisaged. “This restriction will remain in place until the Eurosystem fully develops the procedures for the cross-border use of 'DECCs'”, the ECB stresses in a press release.
The ECB guidelines will be published in the Official Journal of the EU in October. (Mathieu Bion)