and varies with borrower and collateral characteristics. Using transaction-level data from the euro-area interbank repo …

Central bank collateral policy specifies which assets banks can pledge as collateral to obtain central bank funding and … study the systematic effects of central bank collateral policy on banks, financial markets, and asset prices. We identify … collateral policy surprises using intraday bank stock price changes around Eurosystem collateral policy announcements …

Physical climate risks significantly influence banks' collateral practices. Drawing on comprehensive loan-level data … from Sweden, we find that adverse weather events increase both the likelihood and the amount of collateral required for new … loans. For existing loans, banks are less inclined to reappraise collateral following weather shocks; when reappraisals …

facts on the relationship between collateral and the probability of default. First, we show that the pervasive empirical … finding that riskier borrowers pledge collateral is driven by economists' informational disadvantage relative to banks …, the relationship between pledging collateral and the probability of default is non-linear. Increasing the ex …

optimal central bank collateral policy. Central banks specify which assets banks can pledge as collateral to obtain short …-term central bank funding. This is referred to as central bank collateral policy and involves a trade-off between supplying … quality of collateral deteriorates. High emission taxes also reduce investment, debt issuance and, hence, the amount of …