Main refinancing operations

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

Open market operations Main refinancing operations

Main refinancing operations Longer term refinancing operations

Main refinancing operations 5.2 .

Longer term refinancing operations 5.3 .

Valuation principle 5.1 .

Main refinancing operations 3.1.3 .

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

Tender operations calendar Main and longer term refinancing operations

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

5.3 . Fine tuning reverse operations Structural operations Marginal facility reverse

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

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 .

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

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

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

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

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 .

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

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

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

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

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 .

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

outstanding main refinancing operations ( MRO ) outstanding longer term refinancing operations ( LTRO ) total refinancing operations 300 250 200 150 100 50 0 300 250 200 150 100 50 0

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

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

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

Longer term refinancing operations In addition to the weekly main refinancing operations , the Eurosystem also executes monthly longer term refinancing operations with a three month maturity . These operations aim at providing longer term liquidity to the banking system .

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

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 .

Chart 4.5 Volume of the main and longer term refinancing operations ( EUR billions

The time of settlement of the main and the longer term refinancing operations normally coincides with the time of reimbursement of a previous operation of corresponding maturity .

The time of settlement of the main and the longer term refinancing operations normally coincides with the time of reimbursement of a previous operation of corresponding maturity .'

CHART 2 Normal time frame for the operational steps in quick tenders Table 2 Normal trade days for the main and the longer term refinancing operations Type of operation Normal trade day ( T )