Date: Thursday 21 Jun 2012
The European Central Bank (ECB) may be considering a medium-term plan to make its own assessment of sovereign bonds, thus ditching the use of established rating firms, Reuters reports.
As a result of the latest string of ratings downgrades, the pool of assets that banks may put up for collateral against loans from the ECB has been shrinking.
The decision to not rely on existing rating firms would expand the pool of assets that may be used.
The ECB is also considering plans to ease collateral rules for Spanish banks.
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