The Riksbank can grant both intraday and overnight credit, and also uses other monetary policy instruments that entail risks corresponding to those for granting credit. To limit these risks, the Riksbank, like most other central banks and in accordance with the Sveriges Riksbank Act, applies the principle that adequate collateral shall be pledged for all such exposures.
The collateral is mainly comprised of different types of security, but in special cases foreign currency may also be used as collateral. For a detailed description of the requirements applying for securities to be used as collateral for credit, see "Instructions for collateral".
The Riksbank, together with the Danish and Norwegian central banks, has also developed an automatic system for using liquidity in one of the central banks, in the form of a credit balance in an account at the central bank, as collateral for intraday credit in one of the other central banks. This system is called the Scandinavian Cash Pool. In addition to holdings of Danish and Norwegian currencies within the framework of the Scandinavian Cash Pool, the Riksbank also accepts holdings in euro, which are paid into the Riksbank via the Deutsche Bundesbank. A special agreement with the Riksbank is required to use foreign currency as collateral, and a special one-off charge is made for this.
The Riksbank has largely automated the management of collateral, which means that RIX participants can obtain rapid access to increased credit in RIX by registering a transfer of securities in Euroclear Sweden or Euroclear Bank or by paying foreign currency into an account.
With regard to the valuation of collateral, the Riksbank makes a haircut. Normally, the size of the haircut depends on the type of security. Different types of security are placed into one of three liquidity categories. An extra haircut may be made if the valuation prices the Riksbank has access to are not up-to-date. See "Instructions for collateral" for a more detailed description of valuation of collateral. The linked document "Eligible assets (Annex S2)" reports the current haircut including possible extra haircut.
In May 2017, the Riksbank launched a new technical system for the management of collateral.