Targeted Longer-Term Refinancing Operations - History and Evolution from the Perspective of Commercial Banks' Ability to Meet Liquidity Requirements

• Autorzy: Paweł Kowalewski , Błażej Lepczyński

Warianty tytułu

Ukierunkowane długoterminowe operacje refinansujące EBC - historia i ewolucja z punktu widzenia zdolności banków komercyjnych do spełniania norm ostrożnościowych

• Języki publikacji: EN

Abstrakty

EN

The outbreak of the Great Financial Crisis in 2008 forced the largest central banks to use new tools, which gradually began to become part of their unconventional monetary policy. The most spectacular example of the new policy was asset purchases. However, due to the specific nature of the euro area, the ECB has long abstained from launching such purchases and, as a result, has long resorted to its constantly improved refinancing operations. As a result, these refinancing operations have become one of the most important tools of the Eurosystem. They retained their important role even after the ECB launched its expanded asset purchases in 2015, and the subsequent pandemic crisis further underlined their importance. Such operations contributed (together with asset purchases) to the creation of a huge excess liquidity, which had a significant impact on the behaviour of the participants of the banking system. The application of these operations coincided with the efforts of the supervisory authorities to gradually enforce the new liquidity requirements on banks. The aim of this article is to answer the question of how both the course of refinancing operations and their subsequent phasing out affected the ability of banks to meet these requirements. (original abstract)

Operacje TLTRO (Targeted Longer-Term Refinancing Operations) zostały zaprojektowane w dobie nasilającego się ryzyka deflacyjnego w połowie drugiej dekady XXI w. Stały się podstawowym narzędziem stymulowania akcji kredytowej (podaży kredytów) w strefie euro. Europejski Bank Centralny (EBC) stosował tego rodzaju niekonwencjonalną politykę pieniężną z uwagi na niską aktywność banków komercyjnych na rynku kredytowym, która negatywnie wpływała na gospodarkę realną. Od 2014 r. operacje TLTRO i skup aktywów APP (Asset Purchase Programme) były głównymi filarami tzw. luzowania ilościowego. (skrócony abstrakt oryginalny)

Słowa kluczowe

EN

Liquidity management; Interest rate; Monetary policy; Commercial banks

PL

Zarządzanie płynnością finansową; Stopa procentowa; Polityka pieniężna; Banki komercyjne

• Czasopismo: Bank i Kredyt
• Rocznik: 2023
• Numer: nr 6
• Strony: 577--606

Twórcy

autor

Paweł Kowalewski

• Narodowy Bank Polski

autor

Błażej Lepczyński

• Uniwersytet Gdański

Bibliografia

• Banco de Mexico (2020), Additional measures to foster an orderly functioning of financial markets, strengthen the credit channels and provide liquidity for the sound development of the financial system.
• Alberni M., Berges A., Rodriguez M. (2022), TLTRO and bank liquidity in the new rate scenario, Funcas SEFO, 11(6), 56.
• Alvarez C. (2020), Where TLTRO III may be going, Funcas, https://www.funcas.es/articulos/where-tltro-iii-may-be-going/ (data dostępu 3.11.2023).
• Andreeva Desislava C., l García-Posada M. (2020), The impact of the ECB's targeted long-term refinancing operations on banks' lending policies: the role of competition, 2364, europa.eu.
• Barmeier M., Falath J., Kiššová A., Lojschová A. (2023), Impact of TLTRO III on bank lending: the Slovak experience, NBS Working and Discussion Paper, 2/2023, National Bank of Slovakia.
• Bech M., Keister T. (2012), On the liquidity coverage ratio and monetary policy implementation, BIS Quarterly Review, December, 49-61.
• Bernanke B. (2022), 21st Century Monetary Policy: The Federal Reserve from the Great Inflation to COVID-19, W.W. Norton & Company.
• BIS (2013), Basel III: the Liquidity Coverage Ratio and liquidity risk monitoring tools, Bank for International Settlements.
• Canfrac M.R. (2019), LCR and NSFR, banks' liquidity shield, https://www.bbva.com/en/lcr-and-nsfr-what-do-these-liquidity-ratios-stand-for/, accessed 3 November 2023.
• Carmen Castillo Lozoya M., Garcia-Escudero E., Perez Ortiz L. (2022), The effect of TLTRO III on Spanish credit institutions balance sheets, Analytical Articles. Economic Bulletin, 2/2022, Banco de Espana.
• Casanova C., Hardy B., Onen M. (2021), Funding for lending programmes during Covid-19, BIS Quarterly Review, September. Bank for International Settlements.
• Cœuré B.G. (2019), A Tale of Two Money Markets: Fragmentation or Concentration, European Central Bank.
• Diamond D.W., Dybvig P.H. (1983), Bank runs, deposit insurance, and liquidity, Journal of Political Economy, 91(3), 401-419.
• EBA (2023), EBA Report on Liquidity Measures under Article 509(1) of the CRR, EBA/Rep/2023/04, European Banking Authority.
• ECB (2007a), ECB Annual Report for 2007, https://www.ecb.europa.eu/pub/pdf/annrep/ar2007en.pdf.
• ECB (2007b), Supplementary longer-term refinancing operation, https://www.ecb.europa.eu/press/pr/date/2007/html/pr070822.en.html.
• ECB (2014), ECB Annual Report for 2014, https://www.ecb.europa.eu/pub/pdf/annrep/ar2014en.pdf.
• ECB (2015), Euro money market survey 2015, European Central Bank, https://www.ecb.europa.eu/pub/pdf/other/euromoneymarketsurvey201509.en.pdf.
• ECB (2017), ECB Annual Report for 2017, https://www.ecb.europa.eu/pub/pdf/annrep/ar2017en.pdf.
• ECB (2018), ECB Annual Report for 2018, https://www.ecb.europa.eu/pub/pdf/annrep/ar2018~d08cb4c623.en.pdf.
• ECB (2020), ECB 2020 Annual Report, https://www.ecb.europa.eu/pub/pdf/annrep/ar2020~4960fb81ae.en.pdf (europa.eu).
• Ennis H.M., Kirk K. (2022), Projecting the evolution of the Fed's balance sheet, Economic Brief, 22-15, Federal Reserve Bank of Richmond.
• Fudulache A.-E., Goetz M.R. (2023), Long-term deposit funding and demand for central bank funds: evidence from targeted longer-term refinancing operations, Discussion Paper, 12, Deutsche Bundesbank.
• Ghaffour A.R. (2023), Funding for lending programmes. Insights from a Markets Committee Workshop chaired by Abdul Rasheed Ghaffour (Central Bank of Malaysia) Markets Committee from 20 January 2023, bis.org.
• Gocheva V., Mudde Y., Tapking J. (2022), Liquidity coverage ratios and monetary policy credit in the time of Corona, European Central Bank, Working Paper Series, 2668.
• Ihrig J., Mize L., Weinbach G.C. (2017), How does the Fed adjust its securities holdings and who is affected, Finance and Economics Discussion Series, 2017-099, Federal Reserve Board.
• Maraffino G. (2019), Swiss Tiering Has Not Convinced The Market, Interest Rates Research, Euro Money Markets of 12 September.
• Nardi B.G., Nwankwo Ch.I., Meaning J. (2018),The term funding scheme: design, operation and impact, Quarterly Bulletin, Q4, Bank of England.
• Potter S. (2017), Reducing the Size of the Federal Reserve's Balance Sheet: The Benefits of Moving Gradually and Predictably, Federal Reserve Bank of New York.
• Quarles R.K. (2018), Liquidity regulation and the size of the Fed's balance sheet, https://www.bis.org/review/r180522f.pdf.
• Schildbach J. (2021), Crisis? What crisis? European banks rebound (again), Talking Point, Deutsche Bank.
• Schildbach J. (2023), European bank performance - As good as it gets, despite recent wobbles?, Talking Point, Deutsche Bank.
• Sugo T., Vergote O. (2020), Who takes the ECB's targeted funding?, ECB Working Paper Series, 2439, European Central Bank.