ECB Issues Legal Acts on Targeted Longer-Term Refinancing Operations
ECB published a legal act, adopted on July 22, 2019 (ECB/2019/21), related to the third series of targeted longer-term refinancing operations (TLTRO III). TLTRO III operations will help to preserve favorable bank lending conditions and support the accommodative stance of monetary policy. ECB also published an indicative calendar and the reporting templates for TLTRO III. This decision (ECB/2019/21) from July 22, 2019 defines the conditions for participation in TLTRO III and other operational aspects.
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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous Article
SEC Proposes to Amend Customer Margin Rules for Security FuturesRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
