level, tier): At the ECB, formerly a marketable or non-marketable asset for which the respective national central bank set the eligibility criteria, subject to the ECB’s approval. – In Germany, bills of exchange could thus also be submitted to the Landeszentralbanken as collateral for refinancing; however, rediscount credit is no longer available on preferential terms. Such bills of exchange were also referred to as “tier 2 paper”. A single collateral register for the euro area was introduced at the beginning of 2007. – In May 2007, the Governing Council decided that marketable assets issued before the end of May 2007 which are traded on non-regulated markets – and which currently meet the Eurosystem’s requirements in terms of safety and accessibility but not in terms of transparency – will retain their eligibility until the end of December 2009. However, they have not been eligible for Eurosystem credit operations since that date. Uncovered marketable tier two assets issued by institutions were already ineligible with effect from June 1, 2007. – See first class bill, tier one collateral, quantitative easing, credit assessment framework, collateral, collateral list, single, bill. – Cf. ECB Monthly Bulletin, April 2001, pp. 55 ff., ECB Annual Report 2001, pp. 78 f.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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