The impact of minimum haircuts on non-bank leverage in the euro area

Michael Grill, Felix Hermes and Michael Wedow

Macroprudential Bulletin, 2025, vol. 26

Abstract: We use transaction-level data on the euro area repo market to assess the impact of the Financial Stability Board’s (FSB) recommended minimum haircut framework on leverage in non-bank financial institutions. We find that it would affect larger and more leveraged entities the most, indicating its capability to make a meaningful contribution to addressing risks from leverage in non-bank financial institutions. JEL Classification: G18, G23, G28

Keywords: financial regulation; financial stability; haircuts; Repo (search for similar items in EconPapers)
Date: 2025-01
Note: 1280809
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbmbu:2025:0026:4

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