European Central Bank faces the potential loss of valuable bonds, against which the borrower makes a mortgage loan to (ABB), intends to demand from banks for more information on the loan, informs Bloomberg.

Banks use these securities to provide mortgages and credit cards more than any other type of guarantee commitments for loans from the ECB at 676 billion euros ($ 883 billion). The leaders of the bank will tighten the rules in this area after the agency Standard Poor's has announced a “dramatic” decline in the rating of these securities in a deep economic recession.

“The ECB should know more about the assets that provide valuable bonds, which come from the banks as collateral. These are very sensitive to losses in a credit crisis,” - the analyst observes the Munich office of the largest Italian bank UniCredit SpA James Zanezi.

Thus, financial institutions will be required to provide detailed information about each mortgage loan and debt security. For example, the value of the property, providing a mortgage, how assessment was conducted of the property, the information about the borrower's cash flow and debt. Banks will provide the data agencies SP, Moody's Investors Service and Fitch Ratings.

new rules could be introduced before the end of this year. Experts note that detailed information on the secured asset-backed securities need not only for the ECB as the quality of the collateral, but also for investors who are less invested in these instruments. Sales of this type of securities fell this year to 5.2 billion euros, while for the same period last year, it amounted to 45.4 billion euros, while in 2007 this figure reached 167 billion euros, according to UniCredit Bank .

European Central Bank faces the potential loss of valuable bonds, against which the borrower makes a mortgage loan to (ABB), intends to demand from banks for more information on the loan, informs Bloomberg.

Banks use these securities to provide mortgages and credit cards more than any other type of guarantee commitments for loans from the ECB at 676 billion euros ($ 883 billion). The leaders of the bank will tighten the rules in this area after the agency Standard Poor's has announced a “dramatic” decline in the rating of these securities in a deep economic recession.

“The ECB should know more about the assets that provide valuable bonds, which come from the banks as collateral. These are very sensitive to losses in a credit crisis,” - the analyst observes the Munich office of the largest Italian bank UniCredit SpA James Zanezi.

Thus, financial institutions will be required to provide detailed information about each mortgage loan and debt security. For example, the value of the property, providing a mortgage, how assessment was conducted of the property, the information about the borrower's cash flow and debt. Banks will provide the data agencies SP, Moody's Investors Service and Fitch Ratings.

new rules could be introduced before the end of this year. Experts note that detailed information on the secured asset-backed securities need not only for the ECB as the quality of the collateral, but also for investors who are less invested in these instruments. Sales of this type of securities fell this year to 5.2 billion euros, while for the same period last year, it amounted to 45.4 billion euros, while in 2007 this figure reached 167 billion euros, according to UniCredit Bank .