The criteria impose strict conditions, for example requiring a proper legal true sale, allowing only publicly listed senior bonds with a minimum rating, and collateralised by granular homogeneous asset pools. Obtaining Eurosystem eligibility, and thus the prospect of access to funding in an emergency, acts as a powerful incentive for ABS issuers to structure relatively high-quality deals.
Central banks are expected, based on the current economic and financial situation, to fully recognize the importance of their responsibilities in ensuring the stability of prices and of the financial system, and to make judgments on specific and practical matters in view of appropriately assuming these responsibilities.