Abstract

http://ssrn.com/abstract=1773266
 
 

References (1)



 


 



Collateral in Monetary Policy Operations


Francisco J. Callado-Muoz


affiliation not provided to SSRN

Fernando Restoy


Bank of Spain

February 28, 2011

European Financial Management, Vol. 17, Issue 2, pp. 286-304, 2011

Abstract:     
We present a portfolio decision model for banks that permits us to estimate the costs associated with the need to collateralise loans from the central bank. This allows us to calibrate the difference between a restrictive collateral eligibility framework for open market operations, such as that applied by the FED, with a more flexible approach such as that of Eurosystem. We also document that there could potentially appear relevant cost differences between the various collateral mobilisation procedures (pooling and earmarking) that currently coexist in the eurozone.

Number of Pages in PDF File: 19

Keywords: collateral, monetary policy, cost, E52, E58

Accepted Paper Series


Date posted: March 1, 2011  

Suggested Citation

Callado-Muoz, Francisco J. and Restoy, Fernando, Collateral in Monetary Policy Operations (February 28, 2011). European Financial Management, Vol. 17, Issue 2, pp. 286-304, 2011. Available at SSRN: http://ssrn.com/abstract=1773266 or http://dx.doi.org/10.1111/j.1468-036X.2009.00504.x

Contact Information

Francisco J. Callado-Muoz (Contact Author)
affiliation not provided to SSRN
No Address Available
Fernando Restoy
Bank of Spain ( email )
Madrid 28014
Spain
(34 91) 338 5119 (Phone)
(34 91) 338 5678 (Fax)
Feedback to SSRN


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