Eurosystem Monetary Policy and Collateral Management (II/II)
This was the second of the two webinars on Eurosystem Monetary Policy Implementation and Collateral Management. It aimed to raise the understanding of collateral management within the Eurosystem with some emphasis on collateral management daily operations at the Bank of Slovenia.
This webinar touched upon the financial assets given as collateral of Eurosystem liabilities, the role of the Bank of Slovenia in the execution of the monetary policy framework, and the ECMS as a common solution for the Eurozone.
During the webinar we discussed:
Eligible assets for the Eurosystem's credit operations:
- Legal basis and general principles
- Eligible criteria for marketable and non-marketable assets
- Eurosystem credit assessment framework
- Risk control measures and valuation framework
- Additional temporary eligible assets
Outlook for the future: Less complex framework, dilemma on collateral framework differentiated according to credit operations.
Collateral management operations at the Bank of Slovenia:
- Legal basis
- The benefits of pooling vs earmarking system
- Business processes in the area of domestic & cross-border collateral mobilization
- Technical support (use of different SWIFT messages, in-house developed application, data warehouse)
Outlook for the future: ECMS as common solution for the Eurozone
The webinar was primarily designed for policymakers and staff in banking operations of non-Eurosystem central banks, as well as those involved in supporting and developing the financial infrastructure.
The webinar was held in English. It was designed to be partaking by combining subject matter presentations with question and answer sessions. This way, it supported active engagement of the attendees.
It was advisable to have a general understanding about the Eurosystem monetary policy, which was covered at the first webinar. In case you missed it, the recording is available here: https://www.cef-see.org/2018-eurosystem. We discussed the Eurosystem monetary policy operational framework, liquidity management, eligible counterparts, and monetary policy instruments.
Cilka Ferjančič, Bank of Slovenia
Cilka is working on different monetary policy issues: legal base (national documentation), collateral, instruments and emergency liquidity assistance. She is a member of the "Working Group on Monetary and Exchange Rate Policy Instruments and Procedures" at the European Central Bank. Cilka gained first experience working in a financial company, where she was licensed as a broker at the Ljubljana Stock Exchange. Since 1994, she has been employed at the Bank of Slovenia. She worked at different monetary policy instruments such as issuing certificates of deposits and liquidity providing/absorbing operations. In years 2002 - 2004 she was involved in a joint project with Ministry of Finance, on developing Slovenian money markets. In the period before adoption of the euro, she was mainly responsible for the collateral management system.
She graduated at the Faculty of Economics, University of Ljubljana. During her work at the central bank, she has also attended different central banking seminars organized by other central banks and International Monetary Fund.
Martin Podgornik, Bank of Slovenia
Martin is the Head of Back Office in the Banking Operations Department at the Bank of Slovenia. He is a member of two Eurosystem's working groups, namely Eurosystem Collateral Management Harmonization Task Force and Eurosystems Collateral Management System Work Group. The aim of both groups is to build a technical platform for Eurosystem's Collateral Management.
He has been working at the Bank of Slovenia since 2005. He had worked three years in Payment Systems Department, focusing on cross-border retail payment systems, cross-border securities settlement in collateral area, TARGET2 and ancillary systems. In 2008, he has transferred to Banking Operations Department where he worked closely on operational aspects of the Eurosystem's collateral management, SWIFT and other support functions. In January 2009, he took over the Support Section which was in 2017 expanded into Back Office Section. From 2010 to 2012 he worked as a Market Infrastructure Expert at the European Central Bank, working on collateral management topics.
Martin graduated at the Faculty of Economics, University of Ljubljana. During his professional career, he has been continuously updating his knowledge by attending courses in Slovenia and abroad in the area of operational management, change management, payment systems, information security (ISO27001), SWIFT, collateral management, international negotiations, project management, etc.
This learning initiative was supported by: