ECB Amends Monetary Policy Implementation Guidelines

The European Central Bank (ECB) has published amendments to its guidelines on monetary policy implementation in the Eurosystem, effective as of November 30th, 2026. These changes aim to enhance risk protection and improve consistency within the framework.

One key modification is the introduction of a second-best rating system for private sector assets used as collateral under the Eurosystem's collateral framework. This rating will be used to assess eligibility and determine haircuts applied to these assets, which include unsecured bank bonds, covered bank bonds, and those issued by non-financial corporations.

Additionally, the ECB has refined haircuts for own-used or retained assets and increased granularity in applying haircuts to individual credit claims. This update aims to maintain adequate risk protection while ensuring collateral availability.