Euro Area Policies: Financial Sector Assessment Program-Technical Note-Systemic Liquidity Management

July 19, 2018

Preview Citation

Format: Chicago

Euro Area Policies: Financial Sector Assessment Program-Technical Note-Systemic Liquidity Management, (USA: International Monetary Fund, 2018) accessed November 9, 2024

Summary

The flexibility shown by the ECB/Eurosystem in adapting its framework, as required by circumstances, has helped improve funding and liquidity conditions. Compared to the situation pre-crisis, the ECB/Eurosystem has provided liquidity against a broader range of collateral and for as long as four years in terms of maturity; extended liquidity in foreign currency; conducted outright purchases of public and private sector assets (now tapering off); and reduced interest rates into negative territory. In these arrangements, policy is directed from the center, but is implemented mostly by the National Central Banks (NCBs); risks are largely shared. Market participants are complimentary about the role the ECB/Eurosystem has played in backstopping the financial system and its forward guidance on monetary policy.

Subject: Asset and liability management, Banking, Collateral, Financial crises, Financial institutions, Financial sector policy and analysis, Financial sector stability, Financial statements, Lender of last resort, Liquidity, Public financial management (PFM)

Keywords: Asset purchase, Collateral, Counterparty framework, CR, Deposit facility, ECB balance sheet publication, ECB banking supervision, ECB deposit facility, ECB FX reserve, ECB staff analysis, ECB supervision, Eurosystem monetary policy operation, Eurosystem swap lines, Financial sector stability, Financial statements, FX reserve, Global, ISCR, Lender of last resort, Liquidity, Monetary policy operation, Routine ECB, U.S. dollar

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/229
Stock No:

1EUREA2018006
ISBN:

9781484369487
ISSN:

1934-7685

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