Sentence examples for quality of collateral from inspiring English sources

Moreover, the "quality" of collateral is not static.

Regulators are pushing over-the-counter derivatives towards central counterparties (CCPs), which are usually pickier than banks about the quality of collateral they will accept.

All this should be sorted out before the game goes much further.Another looming problem is the quality of collateral that CCPs take.

Recently, the European Central Bank has refused to lend directly to Greek banks because the quality of the collateral they have to offer has become extremely poor.

"But it exposes the E.C.B. to risks linked to the banks because no one knows the quality of the collateral they are providing".

"The allegation that deserves attention is that these firms were knowingly packaging these securities with the knowledge that the quality of the collateral had materially deteriorated without disclosing that change".

Although the ECB has essentially made an offer of unlimited funds, banks are still constrained in how much they may borrow by the quality of the collateral that they are able to hand over.

He said the central bank was concerned that a decline in the quality of the collateral that it holds, as a result of its recent bond-buying program, might raise questions about its ability to intervene in the event of a further deterioration in market conditions.

In a previous paper, (written up in The Economist here) Mr Stein and his co-authors argued that investors and other market participants have a large appetite for financial assets with the attributes of money: ultra short maturity, and minimal credit risk owing to the high quality of the collateral or sterling reputation of the issuer.

Until very recently banks' headquarters knew neither the price at which loans were made nor the quality of the collateral backing them, and credit-risk assessment tended to be a sideline for the marketing department.These improvements, however, do not seem to have had much of an effect in practice.

Given that markets were frozen at that time, and given the dubious quality of some of the collateral posted to the Fed to back the loans, an interest rate of 10 percent would be a reasonable benchmark for measuring the size of this subsidy.