We show that illiquid assets such as bank loans are used by euro area banks both as central bank collateral for short … effects and (3) there are significant switching costs between the various uses of bank loans as collateral so historical … decisions also determine the use of bank loans as collateral. …

, the availability of high quality collateral suitable for encumbrance, capital and sovereign funding conditions. Third, we …

conceptualize the importance of collateral ? (b) how can the analytical integration of geographies of collateralized bank funding … of exit strategies through the lens of collateral? The paper argues that the short-term nature of collateral management …, in particular the key role that perceptions of collateral quality play in European banks' demand for sovereign bonds, is …

We assess the effect of accepting illiquid assets as collateral at the central bank on banks' lending activity. We … pool of collateral pledged with the Eurosystem. Panel regression estimates show that the banks that pledged more illiquid … collateral with the Eurosystem increased their lending to non-financial firms and households: a one standard deviation increase …