Blog: Banks face capital hit on broader energy market collateral –


Lawmakers will be hoping for leniency from both Esma and the EBA

Energy firms struggling to meet huge margin calls amid the severe volatility induced by Russia’s invasion of Ukraine may have found a partial solution – widening the range of clearing house collateral eligible under European Union markets regulation. But banks face a capital hit on such alternative forms of collateral, unless they receive relief under banking regulation at the same time.

“Eligible types are limited to financial collateral for which specific features – such as a good external

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s