Collateral for central bank credit

Counterparties operating in Finland may apply for credit from the Bank of Finland against sufficient collateral. There is access to longer-term credit via monetary policy operations and intraday credit to ensure the smooth transfer of payments.

Like other national central banks in the euro area, the Bank of Finland accepts domestic and foreign securities and bank loans to euro area non-financial corporations and public sector entities as collateral. Assets accepted as collateral, or eligible assets, must fulfil uniform eligibility criteria throughout the euro area. A list of eligible assets is available on the website of the European Central Bank.

No information is published on eligible bank loans; instead, the national central banks keep internal registers on bank loans used as collateral by counterparty banks. The Bank of Finland and the other national central banks value eligible assets in accordance with instructions issued by the ECB.

The Bank of Finland provides its customers with collateral management services related to monetary policy operations and intraday credit.

The use of collateral is described in more detail in the collection of rules entitled ‘Bank of Finland rules for counterparties and customers’. In addition, the Bank of Finland’s TARGET Services and the Counterparties and Collateral Division advise their customers on the use of both domestic and foreign collateral.