Deposit facility

THE DEPOSIT FACILITY

The marginal lending facility The deposit facility

THE DEPOSIT FACILITY

Deposit facility 2.3 .

4.1 The marginal lending facility 4.2 The deposit facility

The marginal lending facility The deposit facility 21 21 22

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

Recourse to the deposit facility of the Eurosystem .

Outright purchases Standing facilities Marginal lending facility Deposit facility Reverse transactions

Standing facilities Marginal lending facility Deposit facility Reverse transactions

The ECB may adapt the conditions of the facility or suspend it at any time . 4.2 a.

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

The interest rate on the deposit facility normally provides a floor for the overnight market interest rate .

The deposit facility Type of instrument Counterparties can use the deposit facility to make overnight deposits with national central banks .

Deposits

Around 3,800 had access to the deposit facility , and 3,200 could access the marginal lending facility .

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

The deposit facility ( a ) T y p e o f i n s t r u m e n t Counterparties can use the deposit facility to make overnight deposits with national central banks .

The deposit facility Type of instrument Counterparties can use the deposit facility to make overnight deposits with national central banks . The deposits are remunerated at a pre specified interest rate .

LEGAL NATURE The overnight deposits accepted from counterparties are remunerated at a fixed rate of interest .

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

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 .

The deposit facility ( a ) Ty p e o f i n s t r u m e n t Counterparties can use the deposit facility to make overnight deposits with national central banks .

At the end of 2007 , 2,122 counterparties had access to the marginal lending facility and 2,798 counterparties had access to the deposit facility .

recourse to the deposit facility recourse to the marginal lending facility 6.0 4.0 2.0 0.0 2.0 4.0 6.0 Feb. Mar .

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 .