National central banks will implement the remainder of the European Central Bank’s asset-backed securities purchase program starting April 1, rather than money management firms.
Transactions had been executed by four money managers, announced by the ECB in November 2014: Amundi, Deutsche Asset Management, NN Investment Partners and State Street Global Advisors. In September 2015, the ECB announced that Deutsche and SSgA would no longer acquire asset-backed securities on its behalf.
The ECB’s governing council decided Wednesday that the program “should be fully implemented by national central banks rather than relying on the support from external managers,” said a statement on its website Thursday. “This had been envisaged and announced when the program was first launched” in late 2014.
The central banks of Germany, Spain, Italy and the Netherlands will join the existing central banks of Belgium and France, which have already been involved in purchasing securities for the program.
The program is aiming to enhance the implementation of monetary policy, and to facilitate providing credit in the real economy.
A spokesman for the ECB could not be reached for comment by press time.