In global financial centers, short-term market rates are effectively determined in the pledged collateral market, where banks and other financial institutions e

In global financial centers, short-term market rates are effectively determined in the pledged collateral market, where banks and other financial institutions e

Large banks and dealers use and reuse collateral pledged by nonbanks, which helps lubricate the global financial system. The supply of collateral arises from sp

Most short-term interest rates in the Euro area are below the European Central Bank deposit facility rate, the rate at which the central bank remunerates banks�

This paper considers the central bank mandate with respect to financial stability and identifies the links to the functioning of securities markets. It argues t