I hope that these ideas contribute something to the ongoing debate about how to preserve the ideals of the credit union movement, help the movement adapt to and thrive in the rapidly changing financial environment, whilst we administer effective supervision to maintain a strong and robust financial system.
Namely, the fact that an asset is eligible as collateral for the Eurosystem’s operations increases its value for the holder and leads to a premium reflecting this value. The operational framework thereby influences the pricing of assets, and possibly also market participants’ willingness to accept them.