Euro Area Policies: Financial Sector Assessment Program-Technical Note-Systemic Liquidity Management
Electronic Access:
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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.
Series:
Country Report No. 2018/229
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)
English
Publication Date:
July 19, 2018
ISBN/ISSN:
9781484369487/1934-7685
Stock No:
1EUREA2018006
Pages:
44
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