a procedure for the uniform assessment of the credit quality of collateral submitted to the ECB (underlyings: assets which credit institutions pledge to the central bank as collateral for short-term liquidity loans and assets which the ECB purchases from credit institutions in the course of liquidity-providing repurchase agreements). – This collateral framework, which applies to the EMU as a whole, was abandoned at the beginning of February 2012. From then on, the national central banks can also provide their banks with money against weaker collateral. An important building block of the single monetary policy thus fell away, and this renationalization was viewed by observers with great concern and, for some, even with sheer horror. – See emergency liquidity assistance, pledge, collateral, redistribution, central bank-initiated. – See ECB Annual Report 2007, p. 112 (describing the ECAF process); Deutsche Bundesbank Annual Report 2011, pp. 46 f. (eligible collateral in general and the lowering of standards; composition of collateral submitted to the Deutsche Bundesbank); ECB Monthly Bulletin of February 2012, pp. 33 f. (expansion of the list of eligible collateral enforced in the Governing Council), ECB Monthly Report of July 2013, p. 77 ff. (detailed presentation of the development of the collateral framework, haircuts, and collateral; many overviews), ECB Monthly Report of April 2014, p. 31 ff. (detailed presentation; new rating classes; overviews).
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