Asset encumbrance in secured funding operations in the Spanish banking sector

Credit institutions’ access to funding is key to their survival, especially during crises, when market liquidity deteriorates. In such periods, the availability of assets that can be used as collateral could be instrumental in preserving access to finance. This article analyses the Spanish banking s...

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Detalles Bibliográficos
Autores: Cáceres, Esther, San Vicente, Jorge
Tipo de recurso: artículo
Fecha de publicación:2024
País:España
Institución:Banco de España
Repositorio:Repositorio Institucional del Banco de España
OAI Identifier:oai:repositorio.bde.es:123456789/38944
Acceso en línea:https://repositorio.bde.es/handle/123456789/38944
Access Level:acceso abierto
Palabra clave:Sistema financiero
Liquidez bancaria
Regulación bancaria
Riesgos y liquidez
Liquidity risk
Encumbered assets
Secured funding
Banking system
TLTRO
Descripción
Sumario:Credit institutions’ access to funding is key to their survival, especially during crises, when market liquidity deteriorates. In such periods, the availability of assets that can be used as collateral could be instrumental in preserving access to finance. This article analyses the Spanish banking sector’s ability to access the secured funding market since late 2014, when the European Banking Authority’s asset encumbrance disclosure framework entered into force. The analysis shows that in Spain, as in all other European countries, asset encumbrance has been declining since 2022. With more unencumbered assets available, banks find it easier to access funding on the financial markets.