MREL bonds to lose ECB collateral eligibility

Jasper Cox

December 18, 2017 10:30 am

ECB_PA_230x150 — (171215) -- FRANKFURT, Dec. 15, 2017 (Xinhua) -- European Central Bank (ECB) President Mario Draghi (L) and Vice President Vitor Constancio (R) attend a press conference at the ECB headquarters in Frankfurt, Germany, on Dec.14, 2017. The ECB Thursday decided to maintain the key interest rates for the euro area at present levels for an extended period of time, and well past the horizon of the net asset purchases. (Xinhua/Luo Huanhuan) (zjl) | Luo Huanhuan/Xinhua News Agency/PA Images

Senior bonds subordinated to other senior liabilities will no longer be eligible as collateral when financial institutions borrow from the European Central Bank (ECB), the organisation has announced.

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Jasper Cox