Collateral
New CRD IV draft exempts sovereign trades from CVA capital charge
The latest council draft adds a CVA capital charge exemption for sovereign derivatives transactions – potentially removing one of the big unintended consequences of CRD IV, participants say
ECB rejects Greek bonds in reaction to rating cut
European Central Bank temporarily stops accepting Greek debt as collateral; move comes one day after rating agency drops country to a selective default rating
Balance sheet lessons from the Bank of Japan
The Bank of Japan has expanded its balance sheet in more ways than any of its developed world peers. Hisashi Harui reviews the unconventional approaches it has used to ensure financial stability
Malaysian and Thai central banks agree deeper cooperation
Bank Negara Malaysia and the Bank of Thailand sign agreement to facilitate a cross-border collateral arrangement for eligible financial institutions in the countries
IMF researchers label asset managers collateral ‘mines’
Paper highlights lack of attention paid to rise of asset managers as a major source of funding for banks through shadow banking system
Banque de France outsources collateral management
French central bank agrees collateral management deal with Euroclear France; entire French banking community will use new system next year
Video: Banks can arbitrage central bank liquidity provision
A conflict between new liquidity regulations under Basel III and existing central bank operations leaves a gap that banks may be able to exploit, warns financial stability expert
Bank of Finland research on moral hazard effect of collateralised loans
Bank of Finland study examines effects on moral hazard when collateral values fluctuate
ECB sets stage to tackle ‘addicted banks’
European Central Bank publishes toughened rules that will allow it to limit individual banks’ access to short-term funds and exclude asset classes
Bank of Canada: central banks prefer higher haircuts
Bank of Canada study shows haircuts on collateralised assets is greater when central banks cannot lend exclusively to illiquid institutions
IMF on link between collateralised borrowing and systemic risk
Fund study says rapid declines in the value of bank collateral can cause systemic risks
ECB’s González-Páramo highlights flaws in collateral framework
European Central Bank executive board member José Manuel González-Páramo acknowledges risks in central bank’s willingness to accept broad range of collateral
Denmark shoots down covered bonds idea
Danish governor argues against reforms to adjust requirements on covered bond collateral but concedes change is necessary
Bank mulls widening collateral pool
Bank of England consults on taking “raw loans” at its discount window facility and calls for more transparency from counterparties, says the move will cement confidence in the financial system
Norway puts rate rises on ice
Pause in exit strategy as recovery “takes hold”, inflation likely to fall
Norges Bank reverses emergency collateral rules
Norway’s central bank tightens collateral guidelines with immediate effect, proposes end to acceptance of bank bonds
More transparency on Maiden Lane
The New York Federal Reserve on Wednesday disclosed further details of the assets held as collateral for the central bank's loans to Bear Stearns, a now-defunct investment bank, and American International Group (AIG), a beleaguered insurer.
ECB wants more info on collateral - report
The European Central Bank (ECB) could toughen up its collateral rules by forcing banks to disclose more detail about the instruments provided in return for the Frankfurt-based institution's funds, say reports.
AIG succumbs to political will, names recipients
In a surprise move, American International Group (AIG), a beleaguered insurer, has revealed the recipients of $105.3 billion-worth of federal funds after coming under intense pressure from politicians to do so.
Bundesbank makes biggest profit since 2001
The Bundesbank posted €6.3 billion ($8 billion) profit last year, it emerged on Tuesday.
What payments experts have learned
Payments experts have learned a lot about liquidity risk and lender of last resort from the crisis, explained Daniel Heller, the new head of the influential CPSS Secretariat in Basel.
Japan's Shirakawa on cross-border collateral
A new framework for central banks' operations where domestic currency is supplied against foreign-currency-denominated collateral should be considered in the near future, said Masaaki Shirakawa, the governor of the Bank of Japan.
Shirakawa signals relaxation of collateral rules
Masaaki Shirakawa, the governor of the Bank of Japan, indicated on Monday that the central bank would soon relax its collateral rules as stress in markets for bank financing intensified.
Carmaker to borrow from ECB
Volkswagen, a German carmaker, plans to tap the European Central Bank (ECB) for a €2.3 billion ($2.9 billion) loan in December.