IDEAS home Printed from https://ideas.repec.org/a/bde/journl/y2023i02n06.html
   My bibliography  Save this article

The role of loans and the ICAS BE in the Eurosystem’s collateral framework in 2023

Author

Listed:
  • Sergio Gavilá

    (Banco de España)

  • Lola Morales

    (Banco de España)

Abstract

Rationale The share of non-marketable assets (mainly bank loans) pledged as collateral in the Eurosystem’s monetary policy credit operations has increased in recent years. The Banco de España’s corporate credit assessment system (ICAS BE) has contributed significantly to this development and may lead to these assets playing a greater role in the future. Takeaways •In the wake of the COVID-19 crisis there has been a considerable increase in the share of non-marketable assets in the collateral pledged by Spanish counterparties in Eurosystem financing operations. A significant proportion of these non-marketable assets are loans to firms rated using the Banco de España’s in-house rating system, called ICAS BE. •There is ample scope to increase the volume of pledged loans with an ICAS BE rating, especially in the case of loans to SMEs. •Spanish firms’ ICAS BE credit ratings have remained relatively stable in the past year, except in the sectors most affected by the COVID-19 pandemic, which have seen a notable improvement.

Suggested Citation

  • Sergio Gavilá & Lola Morales, 2023. "The role of loans and the ICAS BE in the Eurosystem’s collateral framework in 2023," Economic Bulletin, Banco de España, issue 2023/Q2.
    • Handle: RePEc:bde:journl:y:2023:i:02:n:06
    DOI: https://doi.org/10.53479/30149
    as

    Download full text from publisher

    File URL: https://www.bde.es/f/webbde/SES/Secciones/Publicaciones/InformesBoletinesRevistas/BoletinEconomico/23/T2/Files/be2302-art06e.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.53479/30149?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Monetary policy; collateral; loans; ICAS; non-financial corporations; credit rating;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bde:journl:y:2023:i:02:n:06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España (email available below). General contact details of provider: https://edirc.repec.org/data/bdegves.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.