Liquidity upgrade

From ACT Wiki
Revision as of 17:48, 1 July 2022 by imported>Doug Williamson (Classify page.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

Liquidity upgrade, or collateral transformation, is a key part of central banks' liquidity insurance role in financial markets.

It allows participating banks to temporarily exchange less liquid forms of collateral, for collateral which is more liquid, and so improve the liquidity of the participating bank.


See also