ECB Overhauls Monetary Policy Guidelines with New Asset Ratings
The European Central Bank (ECB) has published amendments to its guidelines on the implementation of monetary policy in the Eurosystem. The changes, which will take effect as of November 30, 2026, aim to improve the efficiency and stability of the monetary policy framework.
The amended guidelines introduce a new 'second-best' rating for private sector assets used as collateral for monetary policy operations. This change is intended to provide a more nuanced assessment of these assets, taking into account their creditworthiness.
The haircut schedule for assets used as collateral will also be updated. The ECB has clarified that the treatment of securities issued by financial subsidiaries of non-financial corporate groups will be aligned with that of their non-financial corporate parents.