UK think-tank Positive Money, which advocates for a number of central banking reforms, has called on the Bank of England to stop accepting assets from fossil fuel and other environmentally damaging companies as collateral against its lending operations, saying that it contravenes the bank’s mandate to support the government target of reaching net zero by 2050.
In addition to accepting highly liquid assets such as highly rated government or sovereign debt (category A collateral), central banks, including the Bank of England, accept bonds from non-financial companies as eligible collateral.
