Regulatory Alerts2026-06-11
Sterling Monetary Framework Level B Collateral Set Eligibility Criteria
The Bank of England defines the eligibility criteria for Level B collateral within the Sterling Monetary Framework, requiring securities to be highly liquid and risk-manageable through appropriate haircuts. Eligible assets include sovereign and central bank debt, major international institution bonds, government guaranteed agency bonds, and specific asset-backed securities such as RMBS, ABS, and covered bonds from the UK, US, and EEA. The document outlines strict requirements regarding credit quality, currency denomination, settlement mechanisms, and exclusions for synthetic assets or those referencing US dollar credit-sensitive rates.
Share