Open market operations Main refinancing operations

Main refinancing operations

Main refinancing operations Regular liquidity providing reverse transactions with a weekly frequency and normally a maturity of one week

Main refinancing operations 5.2 .

Longer term refinancing operations 5.3 .

Valuation principle 5.1 .

Main refinancing operations 3.1.3 .

Main refinancing operations Longer term refinancing operations

2 5.1.2 TENDER OPERATIONS CALENDAR MAIN AND LONGER TERM REFINANCING OPERATIONS The main and the longer term refinancing operations are executed according to

1.2 The main refinancing operations In 2001 the Eurosystem conducted 52 MROs .

Tender operations calendar Main and longer term refinancing operations

Risk management at the ECB has two main areas , namely policy operations and investment operations .

5.3 . Fine tuning reverse operations Structural operations Marginal facility reverse

Open market operations Main refinancing operations Longer term refinancing operations Fine tuning operations Reverse transactions Reverse transactions Two weeks Weekly Standard tenders

Liquidity providing OPEN MARKET OPERATIONS Main refinancing operations Longer term refinancing operations Fine tuning operations Reverse transactions Reverse transactions Reverse transactions Foreign exchange swaps Liquidity absorbing

Open market operations Main refinancing operations Longer term refinancing operations Fine tuning operations Reverse transactions Reverse transactions Reverse transactions Foreign exchange swaps One week Three months Weekly Monthly Standard tenders Standard tenders

Reverse transactions are used for main refinancing operations and longer term refinancing operations .

Reverse transactions are used for the main refinancing operations and the longer term refinancing operations .

Reverse transactions are used for main refinancing operations and longerterm refinancing operations .

In this context , the main refinancing operations rate used by the Eurosystem in its tenders for main refinancing operations is regarded as appropriate .

( 10 ) Furthermore , the Eurosystem may occasionally conduct a main refinancing operation with a different maturity ( e.g. one week ) , in parallel with the regular main refinancing operations .

The main refinancing operations , the longer term refinancing operations and structural operations ( with the exception of outright transactions ) are always executed in the form of standard tenders .

The ECB The main refinancing operations , the longer term refinancing operations and structural operations ( with the exception of outright transactions ) are always executed in the form of standard tenders .

In the case of the Eurosystem , these operations always include the main and longer term refinancing operations .

Overview of the monetary policy framework Open market operations Main refinancing Reverse transactions operations Longer term refinancing operations Fine tuning operations Reverse transactions

The bulk of the liquidity was provided through the main refinancing operations .

the main refinancing operations , which are regular liquidity providing reverse transactions with a weekly frequency and a maturity of one week

The operational features of the main refinancing operations can be summarised as follows

In investment operations the focus will be on two main areas .

Main refinancing operations Longer term refinancing operations Fine tuning reverse operations Structural reverse operations Marginal lending facility Credits related to margin calls

Monetary policy operations of the Eurosystem Main refinancing operations 210.4 Longer term refinancing operations 45.0 Standing facilities 0.4 1 ) 0.0 Other operations TOTAL ( a ) 255.7 0.4 0.0 0.4

Main refinancing operations Longer term refinancing operations Fine tuning reverse operations Structural reverse operations Marginal lending facility Credits related to margin calls 6 .

( ii ) longer term refinancing operations ( LTROs ) and ( iii ) fine tuning operations ( FTOs ) ( see Table 1 ) .

Main refinancing operations are described in greater detail in Section 4.3 .

With regard to their aims , regularity and procedures , Eurosystem open market operations can be divided into four categories main refinancing operations , longer term refinancing operations , fine tuning operations and structural operations .

The Eurosystem may impose maximum bid limits in order to avoid disproportionately large bids from individual counterparties .

With regard to their aims , regularity and procedures , Eurosystem open market operations can be divided into four categories main refinancing operations , longer term refinancing operations , fine tuning operations and structural operations .

With regard to their aims , regularity and procedures , Eurosystem open market operations can be divided into four categories main refinancing operations , longer term refinancing operations , fine tuning operations and structural operations .

Maximum bid rate the upper limit to the interest rate at which counterparties may submit bids in variable rate tenders . Bids at a rate above the maximum bid rate announced by the ECB are discarded .

The risk management framework of the ECB focuses on two main areas policy operations and investment operations .

With regard to their aims , regularity and procedures , Eurosystem open market operations can be divided into four categories main refinancing operations , longer term refinancing operations , fine tuning operations and structural operations .

Main refinancing operations regular open market operations executed by the Eurosystem in order to provide the banking system with the appropriate amount of liquidity .

CHAPTER 5 Table 2 Normal trade days for the main and the longer term refinancing operations Type of operation Main refinancing operations Longer term refinancing operations Normal trade day ( T ) Each Tuesday The last Wednesday of each calendar month 1 )

The most important instruments The main refinancing operations are used to provide the banking system with sufficient liquidity and to signal the general stance of monetary policy .

Tender operations calendar ( a ) M a i n a n d l o n g e r t e r m r e f i n a n c i n g o p e r a t i o n s The main and the longer term refinancing operations are executed according to an indicative calendar published by the Eurosystem ( 23 ) . The calendar is published at least three months before the start of the year for which it is valid .