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Targeted longer-term refinancing operations II

At its 10 March 2016 meeting, the ECB Governing Council announced that, in order to improve the monetary transmission process by incentivising lending, it would launch a new series of targeted longer-term refinancing operations (TLTRO‑II). The technical details of their implementation were ultimately enshrined in a decision on TLTRO‑II adopted by the European Central Bank’s Governing Council on 28 April 2016, which was updated on 31 October 2016.

A total of four TLTRO‑II will be conducted on a quarterly basis beginning in June 2016. Each TLTRO‑II will have a four-year maturity with a voluntary repayment option.  Counterparties with sufficient net lending will see the interest rate on their operations reduced to the rate on the deposit facility.