Securities issued by the Greek government will also be eligible for purchases under the PEPP. The Governing Council is also fully prepared to increase the size of its asset purchase programmes and adjust their composition. In addition to this new asset purchase programme, the Governing Council decided on 18 March to expand the range of eligible assets under the corporate sector purchase programme (CSPP).
The Federal Reserve believes this supervisory mapping function is a necessary component of Basel II because it appears difficult for some banks to produce internal estimates of LGD that are sufficient for risk-based capital purposes.