FRANKFURT (Reuters) – The European Central Bank is tightening regulations to prevent banks from pledging some riskier forms of collateral when they borrow from euro zone central banks, it said on Thursday.
“The Eurosystem is excluding investment funds as eligible issuers and guarantors for the collateralization of Eurosystem credit operations, taking into account their specific risks related to potential asset portfolio changes,” the ECB said.
“The Eurosystem is excluding commercial mortgage-backed securities (CMBSs) from collateral eligibility, owing to their relatively complex nature,” it added.
To see all the changes made by the ECB to its collateral framework, please click:
https://www.ecb.europa.eu/press/pr/date/2018/html/ecb.pr180214.en.html
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com