New collateral framework will have a ‘limited’ impact on banks, says DNB
The new collateral framework established by the Netherlands Bank (DNB) will only have a "limited" impact on most banks, according to a bulletin published by the central bank today.
The DNB traditionally deposited all the collateral it received from financial institutions – regardless of which of the central banks' services they were using – into one facility.
In November 2013, it created a second facility specifically for collateral arising from its own activities rather than the monetary policy
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