ECB’s Operational Framework Review: Mix of Instruments to Provide Liquidity

13 March 2024

By Isabel Teles – FRANKFURT (Econostream) – A mix of instruments including main refinancing operations (MROs), three-month longer-term refinancing operations (LTROs), and, in the future, structural longer-term credit operations and a structural portfolio of securities would be relied on to provide liquidity to  the banking system, according to a press release published Wednesday by the European Central Bank announcing changes to its operational framework.

‘The Eurosystem intends to provide central bank reserves through a broad mix of instruments in order to offer an effective, flexible and stable source of liquidity to the banking system, thereby also supporting financial stability’, the ECB said.