Regulatory Alerts2020-04-27
Decision No. 2020-02 of April 20, 2020 on Additional Temporary Measures Concerning Refinancing Operations of the Banque de France and Eligibility of Collateral
The Governor of the Banque de France issued Decision No. 2020-02 to implement additional temporary measures aligning French refinancing operations with Eurosystem monetary policy during the crisis. The decision expands eligible collateral by admitting certain unrated or lower-rated asset-backed securities and specific private loans, including corporate, residential mortgage, and auto loans, subject to strict eligibility criteria and haircuts. It establishes detailed risk control measures, including specific haircut grids based on probability of default and residual maturity, and mandates granular data reporting for underlying loans to ensure regulatory oversight.
Share