ECB takes steps to mitigate impact of possible rating downgrades on collateral availability

PRESS RELEASE

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ECBECB
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https://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200422_1~95e0f62a2b.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200422_1~95e0f62a2b.en.html
Retrieved on: 
Thursday, April 23, 2020
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Eurozone, European Union, European Central Bank, European System of Central Banks, Financial services, Banking, Central bank
Summary
Key Points: 
  • PRESS RELEASE

    ECB takes steps to mitigate impact of possible rating downgrades on collateral availability

    22 April 2020

    The Governing Council of the European Central Bank (ECB) today adopted temporary measures to mitigate the effect on collateral availability of possible rating downgrades resulting from the economic fallout from the coronavirus (COVID-19) pandemic.

  • The decision complements the broader collateral easing package that was announced on 7 April 2020.
  • This would ensure continued collateral availability, which is crucial for banks to provide funding to firms and households during the current challenging times.
  • The ECB may decide, if and when necessary, to take additional measures to further mitigate the impact of rating downgrades, particularly with a view to ensuring the smooth transmission of its monetary policy in all jurisdictions of the euro area.
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