Main refinancing operations

Longer term refi nancing operations

Collateralised loan arrangements should allow for the possibility of operations which are entered into on an intraday basis to be extended to overnight operations .

The most important instrument is reverse transactions ( applicable on the basis of repurchase agreements or collateralised loans ) .

In its financing operations, the Bank shall observe the following principles

1,058 242 816 639 5 Lending to financial sector counterparties of euro area 5.1 Main refinancing operations 5.2 Longer term refinancing operations 5.3 Fine tuning reverse operations 5.4 Structural reverse operations 5.5 Marginal lending facility 5.6 Credits related to margin calls 5.7 Other lending

conduct credit operations with credit institutions and other market participants, with lending being based on adequate collateral.

conduct credit operations with credit institutions and other market participants , with lending being based on adequate collateral .

conduct credit operations with credit institutions and other market participants , with lending being based on adequate collateral .

conduct credit operations with credit institutions and other market participants , with lending being based on adequate collateral .

conduct credit operations with credit institutions and other market participants , with lending being based on adequate collateral .

These operations are aimed at providing longerterm refinancing to the banking sector .

In its financing operations , the Bank shall observe the following principles 1 .

for the purposes of Article 9(1), determine the principles applicable to financing operations undertaken within the framework of the Bank's task

1 Reverse transactions Reverse transactions refer to operations where the Eurosystem buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets provided as collateral .

Transactions in securities other than shares long term securities Transactions in financial derivatives Transactions in loans of which loans from central bank Transactions in other liabilities Transactions in debt instruments ( consolidated ) general government borrowing requirement ( GGBR )

The Board of Directors shall rule on financing operations submitted to it by the Management Committee .

The most important instrument is reverse transactions ( applicable on the basis of repurchase agreements or collateralised loans ) .

The Board of Directors shall rule on financing operations submitted to it by the Management Committee.4.

Reverse transactions refer to operations where the Eurosystem buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets as collateral .

Reverse transactions General considerations ( a ) T y p e o f i n s t r u m e n t Reverse transactions refer to operations where the Eurosystem buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets as collateral .

Reverse transactions General considerations ( a ) Ty p e o f i n s t r u m e n t Reverse transactions refer to operations where the Eurosystem buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets as collateral .

3.1 REVERSE TRANSACTIONS 3.1.1 GENERAL CONSIDERATIONS TYPE OF INSTRUMENT Reverse transactions refer to operations where the Eurosystem buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets as collateral .

Reverse transactions refer to operations where the Eurosystem buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets as collateral .

Credit risk assessment Assets used as collateral in Eurosystem credit operations must meet high credit standards .

General considerations Type of instrument Reverse transactions refer to operations where the Eurosystem buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets as collateral .

In particular , these documents specify whether the HCB will base its operations on repos , collateralised loans ( e.g. pledges over assets ) or both .

finally , they continue to be relevant in providing finance to smaller counterparties .

3.1.1 GENERAL CONSIDERATIONS TYPE OF INSTRUMENT Reverse transactions refer to operations where the Eurosystem buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets as collateral .

Regional National counterpart

3 ) lending or borrowing against underlying assets as collateral

Conditions of funding

This method has been chosen by the Banque de France , the Central Bank and Financial Services Authority of Ireland and De Nederlandsche Bank for the mobilisation of , respectively , French private claims ( claims governed by French law on debtors established in France ) , Irish mortgage backed promissory notes , and Dutch private claims and bills of exchange . 3

1 The activities of the ESCB are carried out in accordance with the Treaty establishing the European Community ( Treaty ) and the Statute of the European System of Central Banks and of the European Central Bank ( Statute of the ESCB ) . The ESCB is governed by the decision making bodies of the ECB .

) Limits in relation to the use of unsecured debt instruments The Eurosystem applies limits to the use of unsecured debt instruments as described in Section 6.4.2 .

However , it cannot be excluded that the strong loan flows partly reflect the re intermediation of some financing onto bank balance sheets given illiquidity in some segments of the asset backed securities markets .

5 Lending to financial sector counterparties of the euro area 5.1 Main refinancing operations 5.2 Longer term refinancing operations 5.3 Fine tuning reverse operations 5.4 Structural reverse operations 5.5 Marginal lending facility 5.6 Credits related to margin calls 5.7 Other lending

Depending on the government borrowing requirements to finance the rescue operations , there can be an impact on gross government debt .

( a ) Description Asset backed securities

The policy rate adjustments are therefore expected to be largely reflected in the bank financing costs facing households and companies .

These operations did not have a direct effect on euro liquidity conditions , but aimed to improve global funding conditions .

This is due , for example , to the aggregation of various instruments within the currently defined maturity bands and the aggregation of secured and unsecured loans within the same category .

In this future valuation scheme , special attention will be paid to the enhancement of theoretical valuation methods and to checks to be performed to ensure a representative valuation when using market prices .

( b ) for the purposes of Article 9 ( 1 ) , determine the principles applicable to financing operations undertaken within the framework of the Bank 's task

6.5 Conditions of funding