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.
- 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
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.
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