ECB changes collateral rules for monetary policy operations

The European Central Bank amended its monetary policy implementation guidelines on 29 September. The new rules apply from 30 November 2026 and change, among other things, the assessment of private-sector assets and the haircuts applied to collateral.

For private-sector assets, the Eurosystem will also use the second-best external credit rating when determining eligibility and haircuts. The change covers unsecured and covered bank bonds, corporate assets and some non-euro area public-sector securities. The first-best rating will remain the reference for euro-area public-sector assets.

The ECB is also refining its haircut schedule, the treatment of own-used or retained assets, and distinctions among individual credit claims. Claims backed by COVID-19-related public guarantees that do not fully meet the general framework will remain eligible only until the end of 2026.

Hungary is not in the euro area, so this framework does not govern Magyar Nemzeti Bank operations. It still matters to Hungarian banks and companies through euro-area funding channels. Related background includes Lagarde’s remarks on market risks and our 28 September market close. The ECB’s official release details the amendments.