German Government Securities Repurchase Agreement and Securities Lending Markets
Repurchase agreements were first developed in the United States of America in 1918 as ‘Resale agreements’ involving Bankers Acceptances, and were initiated to facilitate international trade. In 1923, repurchase agreements involving US Government securities were introduced to help manage bank reserves. Today many central banks use ‘repos’ within a range of tools to implement monetary policy.
KeywordsMonetary Policy Central Bank General Collateral Variation Margin Market Practice
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