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Subject: bank claims on the private sector However, in a context of limited market development and limited diversification of financial instruments, commercial banks may be short of such assets, and requiring their use could undermine the operational efficiency of monetary policy. Therefore, the central bank may need to broaden the list of accepted collateral to nonnego-tiable assets and bank claims on the private sector. At the same time, it is critical to ensure that the eligibility criteria for those assets adequately protect the central bank from incurring losses in its monetary policy operations.3
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