the two main compromises: the tradeoffs between maturity and collateral, and between seniority and control. The framework …

expansion of this market. We show that lending standards declined more in areas that experienced larger credit booms and house …

credit activity, and heightened risk appetite—attributable to the commodity boom—are fuelling price volatility in asset …

elements of credit risk management and important to prudential oversight. As illustrated in this paper, valuation feeds into …

Central bank collateral policies came under pressure with the 2007-08 financial market crisis. This paper addresses the … rationale for and constraints in taking collateral, and recent practices in different collateral frameworks. It then considers … the risks of adverse selection. The paper concludes that (i) the collateral framework needs to include market incentives …

counterparties; (ii) a congruence of collateral policies with market developments; (iii) an ability to increase the average maturity … of liquidity provision; and (iv) central bank cooperation to facilitate the use of cross-border collateral. Flexible use …

withdrawal of the state, however, participants became exposed to credit, liquidity, and operational risks. In the transition, the …