Regulatory Alerts2026-01-22
Guideline (EU) 2026/690 amending Guideline (EU) 2016/65 on valuation haircuts for Eurosystem monetary policy framework
The European Central Bank amends Guideline (EU) 2016/65 to integrate specific non-euro denominated assets and lower-rated asset-backed securities into the general collateral framework. The regulation imposes additional valuation haircuts of 16% for US dollar and pound sterling assets and 26% for Japanese yen assets, while clarifying that credit claims with variable interest options are treated as fixed-rate for haircut calculations. National central banks must implement these measures by 30 March 2026 to ensure harmonized risk control within the Eurosystem.
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