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Since 1 January 1999 the European Central Bank (ECB) has been responsible for conducting monetary policy for the euro area - the world’s largest economy after the United States.

Articles by European Central Bank

Private sector working group issues recommendations on the transition from EONIA to €STR for cash and derivatives products

2 days ago

PRESS RELEASE19 August 2019Transition from EONIA to €STR has impact on broad variety of financial products and processesMarket participants urged to actively prepare for change in publication time of EONIA effective as of 2 October 2019CCPs encouraged to switch their discounting regime from EONIA to €STR towards end of second quarter of 2020The private sector working group on euro risk-free rates has today published a report containing a set of recommendations addressing the impact of the transition from the euro overnight index average (EONIA) to the euro short-term rate (€STR). The recommendations take an operational and valuation perspective, taking into account EONIA’s wide use as a reference rate and as a collateral remuneration and cash flow discounting rate. The report analyses the

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ECB shuts down compromised BIRD website

6 days ago

PRESS RELEASE15 August 2019ECB’s BIRD website hacked by unauthorised partiesEmail addresses and other contact data may have been capturedNo internal systems or market-sensitive data compromisedBIRD website shut down until further noticeThe European Central Bank (ECB) said on Thursday that unauthorised parties had breached the security measures protecting its Banks’ Integrated Reporting Dictionary (BIRD) website, which is hosted by an external provider. As a result, it was possible that the contact data (but not the passwords) of 481 subscribers to the BIRD newsletter may have been captured. The affected information consists of the email addresses, names and position titles of the subscribers. The ECB is contacting people whose data may have been affected. The breach succeeded in injecting

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ECB publishes indicative calendars for the Eurosystem’s regular tender operations and reserve maintenance periods in 2020

12 days ago

PRESS RELEASE9 August 2019ECB publishes indicative tender calendar for 2020ECB publishes indicative reserve maintenance period calendar for 2020 The European Central Bank (ECB) has today published the indicative calendars for the Eurosystem’s regular tender operations and reserve maintenance periods in 2020.The indicative calendar for the Eurosystem’s regular tender operations includes only main refinancing operations (MROs) and three-month longer-term refinancing operations (three-month LTROs). It does not include any supplementary or ad hoc operations which may be carried out in 2020. The calendar can be downloaded from the ECB’s website.The indicative calendar for the Eurosystem’s reserve maintenance periods takes into account the calendar for Governing Council meetings in 2020, as well

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ECB publishes Consolidated Banking Data for end-March 2019

14 days ago

Press release7 August 2019Chart 1Total assets of credit institutions headquartered in the euro area and the EU(EUR billions)Chart 2Non-performing loans ratio of credit institutions headquartered in the euro area and the EU(percentage)The European Central Bank (ECB) has published the Consolidated Banking Data (CBD) with reference to end-March 2019, a data set of the European Union (EU) banking system compiled on a group consolidated basis.The quarterly CBD cover relevant information required for the analysis of the EU banking sector, comprising a subset of the information that is available in the end-year dataset. The end-March 2019 data refer to 378 banking groups and 2,769 stand-alone credit institutions operating in the EU (including foreign subsidiaries and branches), covering nearly

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Results of the June 2019 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD)

21 days ago

PRESS RELEASE31 July 2019Credit terms eased for almost all counterparties between March and May 2019The maximum amount of funding collateralised with euro-denominated securities declined, especially where government and covered bonds were used as collateralDemand for funding continued to decline across all types of collateralIn both the securities financing market and the OTC derivatives market, credit terms offered to almost all counterparties eased between March and May 2019. An improvement in liquidity conditions and market functioning, stronger competitive pressures from other institutions and increased balance sheet availability were the main drivers of this development. Looking ahead, a small net percentage of respondents expect price terms to continue easing for most counterparty

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ECB publishes legal acts relating to targeted longer-term refinancing operations (TLTROs)

23 days ago

PRESS RELEASE29 July 2019ECB defines the conditions for participation in TLTRO III and other operational aspectsECB introduces a change to the notification period of voluntary early repayments for TLTRO IIThe European Central Bank (ECB) today publishes a legal act adopted on 22 July 2019 relating to the third series of targeted longer-term refinancing operations (TLTRO III). TLTRO III operations will help to preserve favourable bank lending conditions and support the accommodative stance of monetary policy.Decision ECB/2019/21 of 22 July 2019 on a third series of targeted longer-term refinancing operations defines the conditions for participation in TLTRO III and other operational aspects.The ECB also publishes Decision ECB/2019/22 of 22 July 2019 amending Decision ECB/2016/10 on a second

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Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)

26 days ago

July 2019External communicationExpiry of the fourth Central Bank Gold AgreementOn 26 July 2019 the ECB announced that the signatories of the Central Bank Gold Agreement had concluded that a formal gold agreement would no longer be necessary after its expiry on 26 September 2019. This decision is without prejudice to each national central bank’s competences regarding the management of its own gold reserves. More detailed information can be found in a related press release available on the ECB’s website.Market operationsBusiness process and legal framework for the production of the euro short-term rate On 10 July 2019 the Governing Council approved the business process for the production of the euro short-term rate (€STR), in particular the publication of the €STR on each TARGET2 business

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As market matures central banks conclude that a formal gold agreement is no longer necessary

26 days ago

PRESS RELEASE26 July 2019Signatories of the fourth Central Bank Gold Agreement no longer see need for formal agreement as market has developed and matured Signatory central banks confirm gold remains an important element of global monetary reserves and none of them currently has plans to sell significant amounts of goldThe European Central Bank (ECB) and 21 other central banks that are signatories of the Central Bank Gold Agreement (CBGA) have decided not to renew the Agreement upon its expiry in September 2019.The first CBGA was signed in 1999 to coordinate the planned gold sales by the various central banks. When it was introduced, the Agreement contributed to balanced conditions in the gold market by providing transparency regarding the intentions of the signatories. It was renewed

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Results of the Q3 2019 ECB Survey of Professional Forecasters

26 days ago

PRESS RELEASE26 July 2019[updated on 26 July 2019 at 16:30 CET]Inflation expectations revised down by 0.1 p.p. at all horizonsReal GDP growth expectations broadly unchangedUnemployment rate expectations revised downRespondents to the ECB Survey of Professional Forecasters (SPF) for the third quarter of 2019 reported point forecasts for annual HICP inflation averaging 1.3%, 1.4% and 1.5% for 2019, 2020 and 2021, respectively. These results represent downward revisions of 0.1 percentage points (p.p.) for each of those years compared with the previous (Q2 2019) survey round. Average longer-term inflation expectations (which, like all other longer-term expectations in this SPF, refer to 2024) declined from 1.8% to 1.7%.SPF respondents’ expectations for growth in euro area real GDP averaged

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Euro banknote counterfeiting decreased further in the first half of 2019

26 days ago

PRESS RELEASE26 July 2019251,000 counterfeit euro banknotes were withdrawn from circulation in the first half of 2019 Over 80% of those counterfeits were €20 and €50 banknotesEuro banknotes continue to be a trusted and safe means of paymentAll euro banknotes can be verified using the “feel, look and tilt” method Some 251,000 counterfeit euro banknotes were withdrawn from circulation in the first half of 2019, a decrease of 4.2% when compared with the second half of 2018 and 16.6% less than in the first half of 2018. The likelihood of receiving a counterfeit is very small indeed as the number of counterfeits remains very low compared with the number of genuine banknotes in circulation, which has risen steadily at rates in excess of GDP growth since they were first introduced. In 2018 the

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ECB adopts opinion on appointment of its future President

27 days ago

PRESS RELEASE25 July 2019Governing Council has no objection to proposed candidate Christine Lagarde The Governing Council of the European Central Bank (ECB) today adopted an opinion on the recommendation from the Council of the European Union on the appointment of the future ECB President.The Governing Council has no objection to the proposed candidate, Christine Lagarde, who is a person of recognised standing and professional experience in monetary or banking matters, as required by Article 283(2) of the Treaty on the Functioning of the European Union. Ms Lagarde took up the role of International Monetary Fund (IMF) Managing Director in July 2011.Following the Governing Council’s opinion and the adoption of an opinion of the European Parliament, the new President will be appointed by the

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Mario Draghi, Luis de Guindos: Introductory statement to the press conference (with Q&A)

27 days ago

Mario Draghi, President of the ECB,Luis de Guindos, Vice-President of the ECB,Frankfurt am Main, 25 July 2019INTRODUCTORY STATEMENTJump to the transcript of the questions and answersLadies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. We will now report on the outcome of today’s meeting of the Governing Council, which was also attended by the Commission Vice-President, Mr Dombrovskis.Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. We expect them to remain at their present or lower levels at least through the first half of 2020, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to our aim over the medium term. We intend to

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Monetary policy decisions

27 days ago

PRESS RELEASE25 July 2019At today’s meeting the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council expects the key ECB interest rates to remain at their present or lower levels at least through the first half of 2020, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to its aim over the medium term.The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time past the date when it

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Results of the July 2019 euro area bank lending survey

29 days ago

PRESS RELEASE23 July 2019Credit standards tightened for loans to enterprises amid concerns about the economic outlookLoan demand increased across all loan categoriesAccess to funding by euro area banks continued to improveCredit standards – i.e. banks’ internal guidelines or loan approval criteria – for loans to enterprises tightened in the second quarter of 2019 (with a net percentage of 5%) according to the July 2019 bank lending survey (BLS), while banks had expected a slight net easing in the previous survey round. Credit standards for loans to households for house purchase remained broadly unchanged (net percentage of reporting banks at -1%, after 3% in the first quarter of 2019), and credit standards for consumer credit and other lending to households continued to tighten (with a net

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Benoît Cœuré: Exchange of views with members of the High Council of Public Finance

July 17, 2019

Introductory remarks by Benoît Cœuré, Member of the Executive Board of the ECB, prior to an informal exchange of views with the High Council of Public Finance, Paris, 17 July 2019Thank you for inviting me to the High Council of Public Finance. It is a pleasure to engage in an informal exchange of views with you on the monetary policy of the European Central Bank (ECB) and more broadly on Economic and Monetary Union (EMU), with a specific focus on issues of relevance to fiscal policy.Allow me to start by briefly discussing the economic situation of the euro area.The euro area economic outlookThe euro area economy grew by 0.4%, quarter on quarter, in the first quarter of 2019, following an increase of 0.2% in the fourth quarter of 2018. However, incoming economic data and survey information

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Private sector working group recommends legal action plan for transition from EONIA to €STR

July 16, 2019

PRESS RELEASE16 July 2019Working group proposes €STR plus a fixed spread of 8.5 basis points as the EONIA fallback rateWorking group recommends, whenever feasible and appropriate, no longer entering into new contracts referencing EONIA as from 2 October 2019In existing contracts referencing EONIA and maturing after December 2021, market participants should replace EONIA as a primary rate as soon as possible or embed robust fallback clausesFor new contracts that still reference EONIA and mature after December 2021, or fall under the EU Benchmarks Regulation (BMR), robust fallback provisions should be includedToday, the private sector working group on euro risk-free rates has published a set of recommendations on the legal action plan for the transition from the euro overnight index average

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New members of the Supervisory Board appointed

July 11, 2019

PRESS RELEASE11 July 2019
[updated 11 July 2019 at 16:30 CET]Edouard Fernandez-Bollo, Kerstin af Jochnick and Elizabeth McCaul will be the new ECB representatives on the Supervisory BoardThe Governing Council of the European Central Bank (ECB) has appointed Edouard Fernandez-Bollo, Kerstin af Jochnick and Elizabeth McCaul as ECB representatives to the Supervisory Board of ECB Banking Supervision, each for a five-year non-renewable term. Edouard Fernandez-Bollo currently serves as Secretary General of the Autorité de contrôle prudentiel et de résolution, the French national competent authority, which he represents on the Supervisory Board. Kerstin af Jochnick serves as First Deputy Governor of Sveriges Riksbank. Elizabeth McCaul is Head of Strategy and interim Chief Executive Officer of

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Account of the monetary policy meeting

July 11, 2019

Of the Governing Council of the European Central Bank, held in Vilnius on Wednesday and Thursday, 5-6 June 20191. Review of financial, economic and monetary developments and policy options Financial market developmentsMr Cœuré reviewed the latest financial market developments.Since the Governing Council’s previous monetary policy meeting on 9-10 April 2019, US trade negotiations with both China and Mexico had progressively deteriorated, negatively impacting global equity markets and pushing equity risk premia higher. Bond yields had declined to multi-year lows. In foreign exchange markets, the euro and the US dollar had appreciated in nominal effective terms, reflecting mainly the weakness in emerging market currencies and, in particular, the Chinese renminbi. At the same time, the euro

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Benoît Cœuré: Inflation expectations and the conduct of monetary policy

July 11, 2019

Speech by Benoît Cœuré, Member of the Executive Board of the ECB, at an event organised by the SAFE Policy Center, Frankfurt am Main, 11 July 2019Stable inflation expectations at levels consistent with price stability provide an important nominal anchor for the economy. They reduce inflation persistence and curb harmful macroeconomic volatility.There is compelling empirical evidence suggesting that increased clarity about central banks’ mandates, their reaction functions and inflation aims has helped anchor inflation expectations and reduce their variability around the communicated inflation aim despite significant shocks to inflation in both directions.[1]However, persistently low inflation since the great financial crisis has led some central bank observers, and financial market

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ECB announces publication time for euro short-term rate (€STR)

July 11, 2019

PRESS RELEASE11 July 2019[updated 11 July 2019 at 12:00 CET]€STR to be published at 08:00 CET on each TARGET2 business day€STR to be published on ECB’s website, via Market Information Dissemination (MID) platform, and through ECB’s Statistical Data WarehouseGovernance of the euro short-term rate will followtranspose IOSCO principles on Financial Benchmarks where relevant and appropriateThe European Central Bank (ECB) has decided that as of the start date on 2 October 2019 the euro short-term rate (€STR) will be published at 08:00 CET on each TARGET2 business day. If errors are detected following the publication of €STR that affect €STR by more than 2 basis points, the ECB will revise and re-publish €STR on the same day at 09:00 CET. No changes will be made to €STR after that time. €STR

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Philip R. Lane: Q&A on Twitter

July 9, 2019

Interview on Twitter with Philip R. Lane, Member of the Executive Board of the ECB, conducted and published on 9 July 2019Congrats Mr. Lane! We wish you all the success and the best in your new Duty.Lane: Thank you, I am very happy to be here at the ECB. I’m liking Frankfurt so far and I’m sure that I’ll continue to enjoy it #AskECB#AskECB Hello, Mr Lane, it seems that market is confident that ECB will cut interest rate and restart the QE, what‘s your view on the stimulus package?Lane: We meet every six weeks to discuss monetary policy and take decisions. We continuously assess the state of the economy and stand ready to act to keep inflation on a path to our aim #AskECB#askECB Do all the ECB macro models of inflation rely on the Phillips curve? If not, what do you use instead (perhaps a

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Benoît Cœuré: Entretien avec BFM Business TV

July 8, 2019

Entretien accordé par Benoît Cœuré, membre du directoire de la BCE, à Hedwige Chevrillon, diffusé le 8 juillet 2019Bonjour. Vous êtes une des personnes dont on a le plus parlé ces derniers jours ; l’actualité de la Banque centrale européenne a été très forte avec la proposition de la nomination de Christine Lagarde à la tête de la présidence de la Banque centrale européenne. Votre nom était cité. Comprenez-vous le choix qui a été fait ?C’est un très bon choix. C’est un très bon choix parce que le parcours de Christine Lagarde, d’abord en France et ensuite au FMI à Washington, la qualifie tout à fait pour être présidente de la Banque centrale.En quoi ?Elle connait parfaitement le fonctionnement de l’économie mondiale et donc celui de la zone euro ; elle sait parler aux marchés financiers ;

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Benoît Cœuré: Interview with BFM Business TV

July 8, 2019

Interview with Benoît Cœuré, Member of the Executive Board of the ECB, conducted by Hedwige Chevrillon, published on 9 July 2019Mr Cœuré, your name has frequently been mentioned in recent days, and the European Central Bank (ECB) has been very much in the news, with the proposed appointment of Christine Lagarde as President of the ECB. Your name had been mentioned – do you understand the reasons for the choice that was made?It’s an excellent choice. It’s an excellent choice because Christine Lagarde’s career, first in France and then at the International Monetary Fund (IMF) in Washington, makes her eminently qualified to be President of the ECB.In what way?She understands perfectly how the global economy works, and how the euro area economy works; she knows how to speak to the financial

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Luis de Guindos: Macroprudential policy ten years after the crisis

July 4, 2019

Keynote speech by Luis de Guindos, Vice-President of the ECB, at the CIRSF Annual International Conference 2019 “Financial Supervision and Financial Stability Ten Years after the Crisis: Achievements and Next Steps”, Lisbon, 4 July 2019Since the financial crisis, the euro area’s institutional architecture has evolved significantly. Back in 2010, in the midst of the crisis, we created the predecessor of today’s European Stability Mechanism (ESM) to provide assistance to euro area countries experiencing or threatened by severe financing problems.[1]At the same time, the European System of Financial Supervision was introduced, aimed at ensuring consistency and appropriate financial supervision in the EU. It includes the European Banking Authority (EBA), which provides harmonised prudential

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Philip R. Lane: Welcome address

July 4, 2019

Welcome remarks by Philip R. Lane, Member of the Executive Board of the ECB, at the ECB conference on “Challenges in the digital age”, Frankfurt, 4 July 2019It is a pleasure to welcome all of you to the ECB for this conference.[1] As a central bank, understanding the myriad implications of digitalisation for the economy is a high priority: the presentations at this conference will provide us with the latest thinking and new insights, helping us in our economic assessments. Of course, digitalisation is also reshaping financial systems and payment systems, while at the same time stimulating intense interest in concepts such as crypto-assets and central bank digital currencies. However, the focus of this event is on the real economy, so I will not dwell on these other topics today.Let me

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Philip R. Lane: Interview with Yle

July 2, 2019

Interview with Philip R. Lane, Member of the Executive Board of the ECB, conducted by Aapo Parviainen and broadcast on 1 July 2019What are the alternatives to fight for the euro when recession hits the euro area next time?What I said today at the conference is the ECB has been creative in developing a toolkit, moving the interest rate below zero, being active in purchasing government debts, special lending programmes for banks and also communicating about future policies. Taken together this has worked quite well, it’s worked quite well so far and I’m confident if there is a downturn more can be done. So if you like the main conclusion of my talk today is that we should be confident that even under these conditions the ECB has the policy measures to allow it to respond to shocks to the

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Philip R. Lane: Monetary Policy and Below-Target Inflation

July 1, 2019

Speech by Philip Lane, Member of the Executive Board of the ECB, at the Bank of Finland conference on Monetary Policy and Future of EMU, Helsinki, 1 July 2019I would like to thank the Bank of Finland for inviting me to speak at this conference in Helsinki today.[1]In my contribution, I wish to share some thoughts on the conduct of monetary policy in a low-inflation environment. This is a global topic that generates similar challenges for most of the central banks represented at this event. To a significant extent, this sequence of low inflation rates reflects the prolonged adjustment dynamics that characterise the aftermath of a major global financial crisis, together with a substantial downward shift in the realisation of shocks to inflation that we have observed in recent years. At the

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Yves Mersch: Economic and monetary policy at a turning point – where is the economy heading in Europe, the United States and China?

June 29, 2019

Speech by Yves Mersch, Member of the Executive Board of the ECB, at the Petersberger Sommerdialog, Königswinter, 29 June 2019Despite the escalating trade dispute between the United States and China, the global economy continues to grow robustly, albeit at a slower pace.Looking at developments in major economies beyond the euro area, activity in the United States is supported by the strong labour market, accommodative financial conditions and current fiscal stimulus. However, economic growth is expected to decelerate. At the same time, in China the slowdown in domestic demand has been cushioned by the implementation of a series of fiscal and monetary policy measures. Although the escalation in the trade dispute with the United States is foreseen to weigh on trade, China is expected to

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Sabine Lautenschläger: Euro Cyber Resilience Board for pan-European Financial Infrastructures

June 28, 2019

Introductory remarks by Sabine Lautenschläger, Member of the Executive Board of the ECB, at the third meeting of the Euro Cyber Resilience Board for pan-European Financial Infrastructures, Frankfurt am Main, 28 June 2019It is a pleasure to welcome you back to Frankfurt. As you may know, I recently became responsible for market infrastructures and payments at the ECB. As this includes the ECB’s work on the cyber resilience of financial market infrastructures (FMIs), I have taken over Benoît Cœuré’s chairmanship of the Euro Cyber Resilience Board for pan-European Financial Infrastructures (ECRB). I would first like to thank Benoît for his contribution in establishing the ECRB and for this opportunity to continue the excellent work on cyber resilience at European level which he has personally

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Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)

June 28, 2019

June 2019Market operationsParameters of the third series of targeted longer-term refinancing operationsOn 6 June 2019 the Governing Council approved key parameters of the third series of targeted longer-term refinancing operations (TLTRO III). These operations, announced on 7 March 2019 and to start in September 2019 and end in March 2021, with a maturity of two years each, will apply an interest rate for each operation set at 10 basis points above the average rate applied to the Eurosystem’s main refinancing operations (MROs) over the life of the respective TLTRO. The rate applied to TLTRO III operations will be lower for counterparties whose eligible net lending between the end of March 2019 and the end of March 2021 exceeds their benchmark net lending. More detailed information on these

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