Intraday liquidity and cross-border collateral: central bank perspectives

Deskripsi

Two mechanisms led by central banks—cross-border liquidity bridges and cross-border collateral arrangements—provide institutional frameworks for mobilizing collateral on a same-day basis. These facilities support effective liquidity management by financial institutions. They also contribute to the development of local capital markets through the associated processes of cross-border collateral transactions, such as valuation, exchange rate adjustments, and advanced risk management techniques.