The increased availability of assets eligible as collateral in Eurosystem refinancing operations has improved the banks’ liquidity position, allowing them to cope with the large volume of bonds due to mature in the coming months. However, these assets include government-backed own use securities maturing over the next few years.
For the future, the availability of collateral must be ensured by extending the range of eligible credits, including to new categories; special care must be taken to ensure that the methods of granting the loans comply with the requirements for Eurosystem refinancing. The amount of collateral must also be sufficient to withstand a possible depreciation of the eligible assets caused by a sovereign downgrade.