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MNI BRIEF: ECB Looking At Green Haircuts For Collateral

(MNI) London
LONDON (MNI)

The European Central Bank's strategic review has examined a range of methods for incorporating climate objectives into its monetary policy, including via its asset purchase and lending programmes, Bank of France Deputy Governor Silvie Goulard said on Tuesday.

Possibilities including adjusting the pricing of credit operations according to climate objectives, or excluding some assets from purchasing programmes, Goulard said in an event organised by LC-Macro Advisors. Collateral requirements could also be affected, possibly by means of haircuts, as well as the ECB's Targeted Longer-Term Refinancing Operations for banks, she said, stressing that this was a matter for ongoing technical work and that nothing had yet been decided.

Green issues are coming more to the fore at the ECB, with President Christine Lagarde speaking on the issue more regularly.

MNI London Bureau | +44 203-865-3829 | jason.webb@marketnews.com
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MNI London Bureau | +44 203-865-3829 | jason.webb@marketnews.com
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