ECB aims for simpler collateral rules post crisis -minutes
FRANKFURT, Sept 18
FRANKFURT, Sept 18 (Reuters) - The European Central Bank aims to simplify the rules it applies to securities banks post at the central bank for funding once the crisis is over, minutes of an ECB expert group meeting showed central bank head Mario Draghi as telling the gathering.
The ECB has loosened its collateral framework over the course of the crisis to give banks better access to its funding operations, with some national central banks accepting riskier assets than others.
Draghi told the Sept. 3 meeting of the ECB's money market contact group (MMCG) - a mix of around 20 top traders and a handful of top ECB experts - that some of the collateral measures inevitably increased the complexity of the overall framework, the meeting's minutes said.
But he said that these measures were temporary and that "the Eurosystem intended to come to a permanent and simpler collateral framework, once ongoing structural reforms on the national and European level would engender a significant reduction of fragmentation in the euro area markets," it said.
Draghi added that the new banking supervision, which will start later next year under the roof of the ECB, would contribute to restoring confidence in the euro zone banking sector and would help to revive cross-border credit flows, with tangible effects for the real economy.
(Reporting by Eva Taylor and Sakari Suoninen)
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