Weekly: Eurozone – ECB updates collateral rules

by: Joost Beaumont , Georgette Boele

The ECB announced changes to its risk control framework, which in general will lead to a decrease in haircuts applied for securities eligible in its monetary policy operations, in particular for asset-backed securities (ABS). It also noted that it continues looking for ways to improve funding conditions for small and medium-sized enterprises (SME), mentioning a possible acceptance of SME-backed ABS loans.