Bank loans as collateral shaping Eurozone monetary policy and markets.
Credit claims, like bank loans, are commonly used as collateral in Eurosystem credit operations. The procedures for using credit claims as collateral are more complex than for other assets. Different types of credit claims have unique characteristics that affect their eligibility. The paper discusses the challenges and measures to facilitate the use of credit claims in the euro area. It also highlights that while the syndicated loan market is significant, its use as collateral is limited.