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The ECB’s revised collateral rules will change how some assets are rated and how haircuts are applied from 30 November 2026.
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The European Central Bank has published changes to the rules for collateral used in Eurosystem monetary policy operations. Taking effect on 30 November 2026, the amendments will change how ratings and haircuts are applied to some assets pledged for central bank credit. [1]
For specified private-sector assets, including unsecured bank bonds, covered bonds and debt issued by non-financial companies, the Eurosystem will use the second-best external credit rating to determine eligibility and haircuts. The change also covers assets issued by non-euro-area public-sector bodies. Euro-area public-sector assets will continue to be assessed using the first-best rating. [1]
The amendments also update haircuts for assets retained or used by their issuers and make haircuts on individual credit claims more sensitive to how those claims are repaid. Subject to conditions, financial subsidiaries of non-financial corporate issuer groups will be placed in the same haircut category as their parent companies. [1]
Credit claims that fall short of the general collateral requirements but carry a COVID-19-related public-sector guarantee under the temporary framework will remain eligible only until the end of 2026. [1]
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