The Bank of Finland grants counterparties and customers finance against security. To ensure smooth payment flows, there is access to intraday credit and longer-term credit via monetary policy operations.
The Bank provides collateral management services related to intraday credit and monetary policy operations. The use of collateral is described in more detail in the Bank of Finland rules for counterparties and customers. In addition, the TARGET2 customer service gives advice to its customers on the use of both domestic and cross-border collateral.
Like other national central banks, the Bank of Finland accepts domestic and foreign securities and bank loans to euro area non-financial corporations and public sector entities as eligible assets. Uniform eligibility criteria are used for assets throughout the euro area. A list of eligible assets is available on the website of the European Central Bank (ECB). No information is published on eligible bank loans; instead, the national central banks keep internal registers on bank loans used as collateral by counterparty banks. The Bank of Finland as well as other national central banks value collateral assets in accordance with instructions issued by the ECB.