Marginal lending and deposit facilities

Standing facilities marginal lending facility deposit facility 10 10

Outright purchases Standing facilities Marginal lending facility Deposit facility

Standing facilities The marginal lending facility The deposit facility 19 19 20

Standing facilities The marginal lending facility The deposit facility 18 18 19

Outright purchases Standing facilities Marginal lending facility Deposit facility Reverse transactions

Standing facilities Marginal lending facility Deposit facility Reverse transactions

Standing facilities marginal lending facility deposit facility 10 23 December 11.6 10

It brings together the Heads of State or Government of the Member States and the President of the European Commission ( see also EU Council ) .

Its departments , called Directorates General , are responsible for the implementation of common policies and general administration in a specific area .

Chapter 4 Standing facilities 4.1 The marginal lending facility 4.2 The deposit facility 21 22

1.4 Standing facilities There are normally two reasons for credit institutions having recourse to the standing facilities .

Chapter 4 4 Standing facilities 22 22 23 4.1 The marginal lending facility 4.2 The deposit facility

Euro area the area covering those EU Member States which have adopted the euro as the single currency in accordance with the Treaty .

Deposits

Standing facilities Marginal lending facility Deposit facility Reverse transactions Deposits Overnight Overnight Access at the discretion of counterparties Access at the discretion of counterparties

It ensures that the tasks conferred upon the Eurosystem and the ESCB are implemented either through its own activities or through those of the NCBs , pursuant to the Statute of the ESCB .

Final transfer an irrevocable and unconditional transfer which effects a discharge of the obligation to make the transfer .

Foreign exchange swap simultaneous spot and forward transactions exchanging one currency against another . The Eurosystem can execute open market operations in the form

It monitors public finances within the framework of multilateral surveillance and submits reports to the Council .

The figures are a weighted average of the euro area countries effective exchange rates .

It should be noted that national central banks of Member States which have not adopted the single currency in accordance with the Treaty retain their powers in the field of monetary policy according to national law and are thus not involved in the conduct of the monetary policy of the Eurosystem .

It comprises the President and the Vice President of the ECB and four other members appointed by common accord by the Heads of State or Government of the countries that have adopted the euro .

It monitors public finances within the framework of multilateral surveillance and submits reports to the EU Council .

Outright purchases Structural operations Reverse transactions Outright purchases Standing facilities Marginal lending facility Deposit facility Reverse transactions

Two standing facilities are available to eligible counterparties the marginal lending facility and the deposit facility .

Outright purchases Structural operations Reverse transactions Outright purchases Standing facilities Marginal lending facility Deposit facility Reverse transactions

The standing facilities are available to counterparties on their own initiative and are called the marginal lending facility and the deposit facility .

Outright purchases Structural operations Reverse transactions Outright purchases Standing facilities Marginal lending facility Deposit facility Reverse transactions

Standing facilities marginal lending facility deposit facility 15 20 February 33.5 21 February 25.0 23 October 19.3

STANDING FACILITIES Marginal lending facility Deposit facility Reverse transactions Overnight Access at the discretion of counterparties Access at the discretion of counterparties

The euro area currently comprises Belgium , Germany , Greece , Spain , France , Ireland , Italy , Luxembourg , the Netherlands , Austria , Portugal and Finland .

Open market operations play an important role in steering interest rates , signalling the stance of monetary policy and managing the liquidity situation in the money market . The standing facilities ( see Box 12 ) the marginal lending facility and the deposit facility are available to the Eurosystem 's counterparties on their own initiative .

Standing facilities as a corridor for short term rates ( 3 ) The Eurosystem also offers two standing facilities to banks a marginal lending facility and a deposit facility ( see Table 1 ) .

STANDING FACILITIES The two standing facilities offered by the Eurosystem , i.e. the marginal lending facility and the deposit facility , provide and absorb overnight liquidity at interest rates which form a corridor for the interbank overnight rate .

Over the year , the daily recourse to the marginal lending and deposit facilities amounted , on average , to Euros 1 billion and Euros 0.8 billion respectively .

Standing facilities

STANDING FACILITIES

STANDING FACILITIES

10 See footnote 4 in this chapter .

Standing facilities 1.3.3 .

The average use of the marginal lending and deposit facilities on the last day of the 11 maintenance periods of 1999 was Euros 3.6 billion and Euros 6.8 billion respectively .

Eurosystem 's foreign exchange liquidity position this comprises the Eurosystem 's foreign reserve assets and the Eurosystem 's other foreign currency claims and liabilities , including positions vis à vis euro area residents such as , for instance , foreign exchange deposits placed with banking institutions resident in the euro area .

Deposit facility

Overnight deposits at a pre specified interest rate ( standing facility )