1. Risk management - collateral - asset quality.
Assets which are of sufficiently high quality to be used as collateral.
Depending on the context, eligible collateral would normally include high quality readily marketable securities, such as gilts.
Lower quality assets might be eligible, depending on the circumstances or the conditions of a particular facility.
2. Sterling Monetary Framework (SMF).
In the context of the Bank of England's (the Bank's) SMF, eligible collateral means assets which are acceptable to the Bank as security for its lending facilities and operations under the SMF.
Gilts are eligible collateral for all facilities.
Other, lower quality, forms of collateral are eligible only for certain SMF facilities.
3. Central banking.
Collateral acceptable to other central banks, for similar facilities and operations.