Regulatory News
ECB survey: credit terms eased in September 2026 SESFOD
ECB said September 2026 SESFOD showed slightly easier credit terms across counterparties, with demand up for securities financing and initial margins lower for several OTC derivatives.
- Credit terms and conditions eased slightly for all counterparty types for a fourth consecutive quarter.
- Demand for securities financing rose for equities and most other collateral types.
- Initial margins declined slightly for several non-centrally cleared OTC derivative types.
Action
The European Central Bank published the results of its September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets.
It said the survey covered June to August 2026 and reflected a period of uncertainty linked to conflict in the Middle East and volatile energy prices.
Respondents
The results were based on responses from 26 large banks. They included 14 euro area banks and 12 banks with head offices outside the euro area.
Effective
The survey found overall credit terms and conditions eased slightly for all counterparty types for a fourth consecutive quarter.
The change was mainly in price terms. Non-price terms eased slightly for banks and dealers, tightened slightly for hedge funds and were unchanged for the other counterparty types.
Respondents expected a further slight overall easing over the following three months.
For securities financing, demand for funding secured against most collateral types increased, led by equities.
Financing rates and spreads increased for most-favoured clients across all collateral types. For average clients, increases were limited to domestic government bonds, other government bonds and convertible securities.
Haircuts decreased for most bond collateral types and asset-backed securities. The maximum amount and maturity of funding made available to counterparties increased for some collateral types.
In non-centrally cleared OTC derivatives, initial margin requirements decreased slightly for foreign exchange, interest rate, equity and several credit derivative types.
The volume and the duration and persistence of valuation disputes increased for several derivative types, particularly credit derivatives.
The volume and the duration and persistence of counterparty valuation disputes were unchanged.
Penalty
No penalty was announced.
स्रोत: ECB,