European Central Bank Appraises its Risk Control Framework for Collateral Assets

• By: Staff Editor
• Date: November 11, 2016
• Source: https://www.ecb.europa.eu/press/pr/date/2016/html/pr161103_1.en.html

On the agenda:

• With effect from 1 January 2017, updated haircut schedules for assets used as collateral in monetary policy operations
• Additional adjustments to haircut schedules to take effect by the end of 2017
• Measures aimed at maintaining adequate risk protection and improving consistency of the framework with a general minimal effect on aggregate collateral amount

With the view to ensure adequate risk protection, the ECB (European Central Bank) constantly reviews and makes adjustments to its collateral eligibility rules and its risk control measures applied while accepting collateral in the Eurosystem monetary policy operations. The Eurosystem refers to the monetary authority of the Eurozone - the EU member states that have adopted the euro as their official currency.