The collateral frameworks of the Eurosystem, the Federal Reserve System and the Bank of England and the financial market turmoil

In response to the turmoil in global financial markets which began in the second half of 2007, central banks have changed the way in which they implement monetary policy. This has drawn particular attention to the type of collateral used for backing central banks’ temporary open market operations and the range of counterparties which can participate in these operations. This paper provides an overview of the features of the different operational and collateral frameworks of three central banks that have been significantly affected by the crisis: the Eurosystem, the Federal Reserve System and the Bank of England. The paper describes the factors that shaped the three frameworks prior to the turmoil. It then describes the actions the three central banks took in response to the turmoil and analyses to what extent these actions were dependent on the initial design of the operational and collateral framework. JEL Classification: E52, E58, G01, G20.Collateral Framework, Central Bank Repo Auctions, Collateral, Open Market Operations, Financial Market Turmoil 2007-2009.

The collateral frameworks of the Eurosystem, the Federal Reserve System and the Bank of England and the financial market turmoil

In response to the turmoil in global financial markets which began in the second half of 2007, central banks have changed the way in which they implement monetary policy. This has drawn particular attention to the type of collateral used for backing central banks’ temporary open market operations and the range of counterparties which can participate in these operations. This paper provides an overview of the features of the different operational and collateral frameworks of three central banks that have been significantly affected by the crisis: the Eurosystem, the Federal Reserve System and the Bank of England. The paper describes the factors that shaped the three frameworks prior to the turmoil. It then describes the actions the three central banks took in response to the turmoil and analyses to what extent these actions were dependent on the initial design of the operational and collateral framework

The collateral frameworks of the Eurosystem, the Federal Reserve System and the Bank of England and the financial market turmoil

OCCASIONAL PAPER SERIES; NO. 107 / DECEMBER 200

Shadow Banking: Policy Challenges for Central Banks

Central banks responded with exceptional liquidity support during the financial crisis to prevent a systemic meltdown. They broadened their tool kit and extended liquidity support to nonbanks and key financial markets. Many want central banks to embrace this expanded role as "market maker of last resort" going forward. This would provide a liquidity backstop for systemically important markets and the shadow banking system that is deeply integrated with these markets. But how much liquidity support can central banks provide to the shadow banking system without risking their balance sheets? I discuss the expanding role of the shadow banking sector and the key drivers behind its growing importance. There are close parallels between the growth of shadow banking before the recent financial crisis and earlier financial crises, with rapid growth in near monies as a common feature. This ebb and flow of shadow-banking-type liabilities are indeed an ingrained part of our advanced financial system. We need to reflect and consider whether official sector liquidity should be mobilized to stem a future breakdown in private shadow banking markets. Central banks should be especially concerned about providing liquidity support to financial markets without any form of structural reform. It would indeed be ironic if central banks were to declare victory in the fight against too-big-to-fail institutions, just to end up bankrolling too-big-to-fail financial markets

A Universal Method to Produce Low–Work Function Electrodes for Organic Electronics

A Sturdy Electrode Coating To operate efficiently, organic devices—such as light-emitting diodes—require electrodes that emit or take up electrons at low applied voltages (that is, have low work functions). Often these electrodes are metals, such as calcium, that are not stable in air or water vapor and have to be protected from environmental damage. Zhou et al. (p. 327 ; see the Perspective by Helander ) report that a coating polymer containing aliphatic amine groups can lower the work functions of various types of electrodes by up to 1.7 electron volts and can be used in a variety of devices. </jats:p

Systematic Reliability Study of Top-Gate p- and n‑Channel Organic Field-Effect Transistors

We report on a systematic investigation on the performance and stability of p-channel and n-channel top-gate OFETs, with a CYTOP/Al2O3 bilayer gate dielectric, exposed to controlled dry oxygen and humid atmospheres. Despite the severe conditions of environmental exposure, p-channel and n-channel top-gate OFETs show only minor changes of their performance parameters without undergoing irreversible damage. When correlated with the conditions of environmental exposure, these changes provide new insight into the possible physical mechanisms in the presence of oxygen and water. Photoexcited charge collection spectroscopy experiments provided further evidence of oxygen and water effects on OFETs. Top-gate OFETs also display outstanding durability, even when exposed to oxygen plasma and subsequent immersion in water or operated under aqueous media. These remarkable properties arise as a consequence of the use of relatively air stable organic semiconductors and proper engineering of the OFET structure