European Commission 29 June 2016, REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the appropriateness of Article 3(1) of Directive 2002/47/EC on financial collateral arrangements

EUROPEAN COMMISSION Brussels, 29.6.2016 COM(2016) 430 final REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the appropriateness of Article 3(1) of Directive 2002/47/EC on financial collateral arrangements 1.Introduction Collateral is given by a borrower to a lender to minimise the risk of financial loss to the lender if the borrower defaults on its obligations.