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Gradual phasing-out of pandemic collateral easing measures

Author

Listed:
  • Bakker, Charlotte
  • Bortolussi, Luca
  • Büssing-Lörcks, Mark
  • Fudulache, Adina-Elena
  • Gomes, Diana
  • Pavlova, Iskra
  • Sauer, Stephan

Abstract

The gradual phasing-out of the pandemic collateral easing measures in three steps between July 2022 and March 2024 will restore the Eurosystem’s pre-pandemic risk tolerance in its collateral framework, while avoiding cliff effects in collateral availability. The collateral easing measures introduced in April 2020 facilitated banks’ access to Eurosystem credit operations by adding around €285 billion of collateral, playing an important role in supporting the provision of credit to the economy during the coronavirus (COVID-19) pandemic. The ECB will continue to waive the minimum credit quality requirement for Greek government bonds (GGBs), allowing national central banks (NCBs) to accept them as collateral at least as long as reinvestments in such bonds under the pandemic emergency purchase programme (PEPP) continue. JEL Classification: E58, E65, G01

Suggested Citation

  • Bakker, Charlotte & Bortolussi, Luca & Büssing-Lörcks, Mark & Fudulache, Adina-Elena & Gomes, Diana & Pavlova, Iskra & Sauer, Stephan, 2022. "Gradual phasing-out of pandemic collateral easing measures," Economic Bulletin Boxes, European Central Bank, vol. 3.
    • Handle: RePEc:ecb:ecbbox:2022:0003:7
    Note: 362683
    as

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    Citations

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    Cited by:

    1. Hudepohl, Tom & Malderez, Suzanne, 2024. "The use of the Eurosystem’s monetary policy instruments and its monetary policy implementation framework in 2022 and 2023," Occasional Paper Series 355, European Central Bank.

    More about this item

    Keywords

    collateral; coronavirus (COVID-19) pandemic; credit operations; Monetary policy implementation; TLTRO;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • G01 - Financial Economics - - General - - - Financial Crises

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