-mentioned key services, especially when programmes are larger and/or are retained by the issuer for use as collateral with the … for networks based on the use of securities as Eurosystem collateral. These findings help demonstrate the importance of … the Eurosystem’s risk management framework for ABSs and CBs, and support the orientation of recent regulatory efforts at …

covered bonds are secured and backed by collateral. Our results show that collateral reduces the total risk in individual … significantly lower level of systematic risk. However, the fraction of systematic risk to total risk is higher for covered bonds. By … decomposing the variance of bond returns, we find that around 33% of the risk in senior bonds is systematic, versus 53% in covered …

to force banks to develop adequate internal risk management procedures while taking a largely agnostic approach as to … downplay risk, while large financial institutions gain a significant advantage and the distribution of responsibility between …-grained guidance on how banks should evaluate climate risk. Although we broadly think this approach is the more effective route to …

The risk that a financial institution will experience a loss because it did not accurately determine the fair value of … the financial instruments on its balance sheet is known as Valuation Risk (VR). That risk is sometimes heightened because … and risk-awareness in the financial industry. By increasing clarity and transparency around bank risks through increased …

hypothesis: (1) the OBSa-risk relation is not necessarily homogenous across the different risk measures that define a bank's risk … position; and (2) banks' counterparties in OBSa are the risk averse, less informed side of an adverse selection problem. As a … result, on the one hand, the on-balance sheet assets used by banks to engage in OBSa are the most valuable for risk …

The ECB has accepted increasing amounts of rubbish collateral since the crisis started leading to exposure to serious … private sector credit risk (i.e. default risk) on its collateralised lending and reverse operations ("repo"). This has led … ECB balance sheet risk is small compared to the FED and BoE as it neither increased its quasi-fiscal operations as much as …

in modern monetary and financial systems, namely central bank collateral frameworks. Their importance can be understood …, not defined in a market, but by the collateral frameworks and interest rate policies of central banks. Using the … collateral framework of the Eurosystem as a basis of illustration and case study, the paper brings to light the functioning …

conduct an econometric analysis of the driving factors of banks’ asset encumbrance, highlighting the relevance of credit risk …, the availability of high quality collateral suitable for encumbrance, capital and sovereign funding conditions. Third, we …

We investigate the importance of the housing-based collateral lending channel on firm borrowing, investment and … opacity, and therefore the degree of their reliance on collateral to overcome borrowing constraints. We find that changing … collateral more important …