17 Nov 2014
Mario Draghi: "Challenge is to make collateral framework simpler and more transparent"
FXStreet (London) - European Central Bank president Mario Draghi is currently addressing the European Parliament's Economic and Monetary Affairs Committee:
- “So far, the Eurosystem has never had to recognise a loss stemming from the Eurosystem credit operations
- “Restricting banks' access to liquidity would increase the risk for the central bank’s balance sheet rather than protecting it
- “But relaxing eligibility criteria always coupled with a stricter counterparty framework and more stringent risk control measures
- “Challenge is to make collateral framework simpler and more transparent without impacting ability to access refinancing operations
- “So far, the Eurosystem has never had to recognise a loss stemming from the Eurosystem credit operations
- “Restricting banks' access to liquidity would increase the risk for the central bank’s balance sheet rather than protecting it
- “But relaxing eligibility criteria always coupled with a stricter counterparty framework and more stringent risk control measures
- “Challenge is to make collateral framework simpler and more transparent without impacting ability to access refinancing operations