The European Central Bank (ECB) Executive Board Member Yves Mersch is on the wires now, via Reuters, making a speech titled ‘Central bank risk management in times of monetary policy normalization” at the International Risk Management Conference in Paris.
Key Quotes:
“Risk management has gained in importance in recent years for both commercial and central banks.
The management and measurement of risks have also been of great significance for the monetary policy side of our operations.
The ECB, like other central banks, has expanded its balance sheet substantially in recent years, resulting in several changes in our risk management framework.
As monetary policy begins to normalize, there are three areas in particular where our risk management framework needs to be reviewed.
We need to start thinking about a financial risk management framework that will be appropriate in an environment of more conventional monetary policy.
Should keep the flexibility of collateral framework.”
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