Arbeitspapier
How much fiscal backing must the ECB have? The euro area is not the Philippines
The ECB has accepted increasing amounts of rubbish collateral since the crisis started leading to exposure to serious private sector credit risk (i.e. default risk) on its collateralised lending and reverse operations (repo). This has led some commentators to argue that the ECB needs fiscal back-up to cover any potential losses to be able to continue pursuing price stability. This Brief argues that fiscal backing is not necessary for the ECB for three reasons. Firstly, the ECB balance sheet risk is small compared to the FED and BoE as it neither increased its quasi-fiscal operations as much as the Fed or the BoE nor did it engage to a very large extent in outright bond purchases during the financial crisis. Secondly, the ECB's specific accounting principles of repo operations provide for more clarity and earlier recognition of losses. Thirdly, the ECB can draw on substantial reserves of the euro area national banks.
- Sprache
-
Englisch
- Erschienen in
-
Series: DIW Discussion Papers ; No. 996
- Klassifikation
-
Wirtschaft
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Money Supply; Credit; Money Multipliers
Central Banks and Their Policies
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- Thema
-
Central bank independence
central bank capital
counterparty risk
repurchase agreements
collateral
fiscal backing
liquidity
haircuts
Zentralbankautonomie
Eigenkapital
Finanzmarktkrise
Kreditsicherung
Pensionsgeschäft
Bankenliquidität
Öffentliche Anleihe
Eurozone
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Belke, Ansgar
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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Objekttyp
- Arbeitspapier
Beteiligte
- Belke, Ansgar
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2010
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