ECB Said to Weigh Bigger Loans for Collateral Disclosure

The European Central Bank may lend more money against asset-backed bonds if issuers provide additional information about the loans underpinning the securities, according to a person familiar with the matter.

Banks can borrow money from the ECB’s liquidity facility by posting collateral, with a discount applied depending on its perceived safety. The bank’s Eurosystem Risk Management Committee is discussing lowering the reduction on asset-backed bonds from the 16 percent levied now, said the person, who declined to be identified because the talks are private.