Featured Product

    ECB Amends Guideline on Temporary Collateral Easing Measures

    June 17, 2021

    ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral. The amendment extends the application period of certain collateral easing measures until July 30, 2022. These measures were introduced in April 2020, in response to the COVID-19 pandemic. Guideline 2021/975 shall take effect on the day of its notification to national central banks of the member states whose currency is the euro. The Eurosystem central banks shall comply with the guideline from September 30, 2021.

    The Governing Council of ECB had adopted certain collateral easing measures by amending Guideline ECB/2014/31 on April 07, 2020 and April 22, 2020. The additional measures set out in the amendments introduced on April 07, 2020 applied temporarily and no end date was specified, with the rationale that the measures could be revoked at any given time. The amendments introduced on April 22, 2020 remain in effect until September 29, 2021, as the Governing Council considered that they should apply until the first early repayment date under the third series of targeted longer-term refinancing operations (TLTRO-III) applicable at that time.

    On December 10, 2020, the Governing Council had decided to adopt additional monetary policy measures with the aim of contributing to preserving favorable financing conditions over the pandemic period. As part of these measures, the Governing Council decided that the collateral easing measures adopted on April 07, 2020 and April 22, 2020 should apply until June 30, 2022. Therefore, certain provisions of Guideline ECB/2014/31 related to collateral easing measures shall remain in effect until July 30, 2022. This will ensure that banks can continue to make full use of the liquidity operations of Eurosystem, most notably TLTRO-III. In addition. Annexes IIa and IIb of the Guideline ECB/2014/31 have been replaced by Annexes I and II of the Guideline 2021/975, respectively. The Annexes are related to valuation haircut levels applied to asset-backed securities and marketable assets. The Governing Council plans to reassess these collateral easing measures before June 2022. 

     

    Related Link: Guideline 2021/975

     

    Keywords: Europe, EU, Banking, Securities, COVID-19, Credit Risk, TLTRO III, Collateral Framework, Haircut, Deadline Extension, Counterparty Risk, ECB

    Featured Experts
    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7307