ECB eases securities lending limits to address collateral shortage
Governing council aims to provide “backstop for the euro area repo markets”
The European Central Bank has eased the limits on its securities lending operations, to address collateral scarcity in the repo markets.
The decision was made during a non-monetary policy meeting on November 9. Officials increased the volume of securities the ECB can lend against cash from €150 billion ($152.3 billion) to €250 billion. In an unusual move, the ECB did not put out an official announcement following the decision.
The decision came into force today (November 10), and applies to
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