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    Eligible central bank collateral in times of serious financial distress

    Sibert, Anne (2008) Eligible central bank collateral in times of serious financial distress. Other. European Parliament, Brussels.

    Dec2008.pdf - Published Version of Record

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    On 15 October the ECB massively expanded the set of securities that it accepts as collateral. All securities should be accepted as collateral, given severe enough valuations and haircuts. The ECB should be more transparent in explaining how it values illiquid securities as collateral. The ECB could use a reverse auction to value securities but it should avoid outcomes with fire sale prices. Crisis conditions mean that the Eurosystem could need recapitalisation; an automatic arrangement to provide this should be in place.


    Item Type: Monograph (Other)
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Sarah Hall
    Date Deposited: 06 May 2014 15:25
    Last Modified: 02 Aug 2023 17:10


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