European Central Bank

ECB, Europe, Repo

European Central Bank, Repo, topstory

The European Central Bank’s (ECB) recent decision to provide a Euro repo facility to non-Euro area central banks through June 2021 was an interesting one, suggesting that like the dollar,…

Central banks to reduce frequency of US dollar liquidity operations

June 19, 2020

Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Swiss National Bank, US dollar liquidity

In view of the improvements in US dollar funding conditions and the low demand at recent 7-day maturity US dollar liquidity-providing operations, the Bank of England, the Bank of Japan,…

Worried about negative US interest rates? Get smart on yield curve control (Premium)

May 13, 2020

Interest rates, Regulatory

Bank of Japan, European Central Bank, Federal Reserve, interest rates, negative rates, Regulatory, topstory, yield curve control

The news that US interest rate futures traded negative for late 2020 and into 2021 is important, but that doesn’t mean that negative US interest rates are on the way.…

ECB collateral adjustments help, but the EU must still take big moves on bank balance sheets (Premium)

April 27, 2020

Basel III, ECB, Regulatory

collateral, European Central Bank, Leverage Ratio, Non-performing loans, topstory

While the European Central Bank’s (ECB) adjustments to acceptable collateral and other tweaks have been useful, what really needs to happen is a significant and competitive move by the EU…

The Euro project is also under attack from COVID-19 (Premium)

March 30, 2020

ECB, Europe, Regulatory

COVID-19, Euro, European Central Bank, topstory

Strong arguments have emerged for why the Euro will not survive the COVID-19 crisis and if it does, why economic and fiscal policy in Europe would be changed for a…

Decoding the ECB’s policy moves to combat coronavirus impacts (Premium)

March 17, 2020

ECB, Regulatory

coronavirus, European Central Bank, topstory

The European Central Bank last week released a series of policy measures to combat economic and stock market declines as a result of the coronavirus. These were all good moves,…

The Eurosystem Collateral Management System (ECMS) and tri-party: good, bad or indifferent? (Premium)

February 5, 2019

Collateral Management, ECB, Europe

ECB, ECMS, European Central Bank, Eurosystem Collateral Management System, topstory

The ECB recently took the next step in their Eurosystem Single Market Infrastructure Gateway (ESMIG) project, which itself progresses the aims of the Eurosystem Collateral Management System (ECMS). We look…

When looking at bankers leaving London post-Brexit, it’s computers as much as headcount (Premium)

April 3, 2018

Collateral Management, Europe, Regulatory, Technology

Brexit, European Central Bank, headcount, London, topstory

We’ve been reading the numbers of bankers leaving Brexit (4,000 for Paris, 1,000 for Frankfurt) and something has seemed amiss. EU regulations require more than a token presence in order…

Finadium: Central Bank Tapering: Impacts for Liquidity and Collateral Markets

September 12, 2017

Bank of England, Bank of Japan, Collateral Management, ECB, Federal Reserve, Investments, Liquidity Management

Bank of England, Bank of Japan, Central Banks, European Central Bank, Federal Reserve, Finadium, tapering, topstory

Central bank tapering season is on the horizon: this means opportunities for price volatility, spread movements between products, and exchange rate fluctuations. It also means a potentially new set of…

Who should be counterparties to central banks? (Premium)

August 9, 2017

Richard Stinchfield

Credit Exposure, ECB, Federal Reserve

Central Banks, counterparties, European Central Bank, Federal Reserve, primary dealers, topstory

Central banks have shown two models for interacting with counterparties. In the Federal Reserve’s primary dealer system, there are a limited number of participants. On the other hand, the European…

Brexit reaction by Bank of England brings UK in closer alignment to Europe but not in a good way

August 11, 2016

Richard Stinchfield

Bank of England, ECB, Europe, Interest rates, Short Term Interest Rate Benchmarks

Bank of England, Brexit, ECB, European Central Bank, Quantitative Easing, topstory

On August 4th, the Bank of England (BoE) cut its key overnight rate by half to a new record low of 0.25%, lower even than directly in the wake of…

Why the Leverage Ratio doesn’t reduce risk, it just moves it around (Premium Content)

November 30, 2015

Basel III, ECB, Regulatory, Risk Management

ECB, European Central Bank, Leverage Ratio, risk management, topstory

The value of the Leverage Ratio has been proclaimed as a non-risk based measure that is supposed to capture all on and off-balance sheet liabilities of a bank. Together with…

Finadium: T2S, Collateral and Liquidity: Building a Strategy for Growth

May 14, 2015

Collateral Management, Custodians, ECB, Europe, Liquidity Management

Agent Banks, collateral, Custodians, European Central Bank, Finadium, financial intermediaries, Liquidity, Payment Banks, T2S, topstory

Collateral and liquidity management under TARGET2-Securities (T2S) is an emerging work stream that requires attention from market participants. Settlement mechanisms under T2S are now generally understood, including how settlement will…

Bloomberg: European government borrowing costs at record lows

February 12, 2015

European borrowing costs, European Central Bank

Europe’s Debt Investors Lap Up $19 Billion at Record-Low Yields (Bloomberg) — Borrowing costs for European governments tumbled to all-time lows in $19 billion of debt auctions across the continent…

Reuters: ECB trains its sights on banks' in-house risk models

November 19, 2014

European Central Bank

(Reuters) – The European Central Bank (ECB) plans to inspect the internal models that banks use to calculate their risks to ensure that these systems behave consistently, a senior policymaker…

The ECB’s stress tests: what got stressed and what do the results mean?

October 28, 2014

ECB, Europe, Regulatory

European Central Bank, stress tests, topstory

You’ve seen the headlines by now: the European Central Bank’s stress tests showed 25 banks out of 130 with insufficient capital, and 12 of those have already raised further assets. The…

Bloomberg: Cash Deposited at ECB Plunges as Negative Rate Starts

June 13, 2014

European Central Bank

Cash deposited overnight with the European Central Bank plunged to the lowest level since 2011 as a negative interest rate took effect. Euro-area banks parked 13.6 billion euros ($18.4 billion)…

November 30, 2011

Jonathan Cooper

Liquidity Management, Repo, Securities Lending, Systemic Risk, Tri-Party Repo

Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Finadium, FX Swaps, Repo, Securities Lending, Swiss National Bank, tri-party repo