The Bank of Finland temporarily expands the eligibility of collateral for monetary policy operations
The Bank of Finland has updated its rules for counterparties and customers1. The updated rules enter into force on 1 September 2020.
As part of actions aiming to mitigate the economic impacts of the COVID-19 pandemic, the Bank of Finland has decided to adopt its own framework for Additional Credit Claims (ACC) as of 1 September 2020. Only some national central banks within the Eurosystem have had an ACC framework in place since 2011, but their number has increased during the COVID-19 pandemic.
On 7 April 2020, the ECB Governing Council decided on a temporary expansion of the Eurosystem’s collateral framework. The Governing Council also decided to extend the ACC frameworks. The Governing Council decided that national central banks may temporarily accept as collateral such loans granted by banks to corporates which benefit from a government- or public-sector guarantee as a response to COVID-19. In Finland, such guarantees are granted by Finnvera Plc.
In addition, the Bank of Finland expands the range of accepted collateral by lowering the threshold of creditworthiness for credit claims otherwise meeting the eligibility criteria.
For more information please contact: Katri Järvinen, Senior Financial Economist, tel. +358 9 183 2215 and email ACC@bof.fi.
Further information on additional credit claims: https://www.ecb.europa.eu/explainers/tell-me-more/html/acc_frameworks.en.html
Bank of Finland rules for counterparties and customers
1 Implementation of monetary policy operations and collateral management at the Bank of Finland, 1 September 2020