ECB Issues Legal Acts on Targeted Longer-Term Refinancing Operations

ECB also published ECB/2019/22, which amends Decision (EU) 2016/810 on a second series of targeted longer-term refinancing operations (TLTRO II), introducing a change to the notification period of voluntary early repayments for TLTRO II to facilitate the calculation of the bid limits for the TLTRO III. Paragraphs 3 and 4 in Article 6 of Decision (EU) 2016/810 have been replaced. ECB/2019/21 and ECB/2019/22 shall enter into force on August 03, 2019.

TLTROs are Eurosystem operations that provide financing to credit institutions. By offering long-term funding to banks at attractive conditions, TLTROs preserve favorable borrowing conditions for banks and stimulate bank lending to the real economy. A first series of TLTROs was announced on June 05, 2014, a second series (TLTRO II) was announced on March 10, 2016, and a third series (TLTRO III) was announced on March 07, 2019. In TLTRO III, similar to TLTRO II, the interest rate to be applied is linked to the lending patterns of participating banks. The more loans participating banks issue to non-financial corporations and households (except loans to households for house purchases), the more attractive the interest rate on their TLTRO III borrowings becomes.

Related Links

• Press Release
• ECB/2019/21 (PDF)
• ECB/2019/22 (PDF)
• TLTRO III Reporting Templates (XLSX)
• Indicative Calendar for TLTRO III (PDF)
• TLTRO Overview

Effective Date: August 03, 2019

Keywords: Europe, EU, Banking, TLTRO III, Refinancing Operations, ECB 2019/21, ECB 2019/22, Reporting, ECB