ASSET ENCUMBRANCE

The report monitors the evolution of asset encumbrance and contributes to the ongoing assessment of the composition of funding sources across EU banks.

The report includes the following topics:

• The outbreak of the COVID-19 pandemic led to a substantial increase in encumbrance
• The highest asset encumbrance ratios continued to be observed in countries with specific funding market characteristics
• Central bank funding has become the main source of asset encumbrance
• More than half of central bank eligible assets are already encumbered

The entire report can be found here.