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Lost in terminology?
Key concepts in simple words.

What are non-performing loans?

… what is collateral?

2 November 2016

What is collateral and why do central banks require it?
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What are non-performing loans?

… what are non-performing loans?

12 September 2016

Loans are considered “non-performing” when more than 90 days have passed without the borrower paying the agreed instalments. Why are bad loans an issue for banks and how does bad debt affect monetary policy?
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What are minimum reserve requirements?

… what are minimum reserve requirements?

11 August 2016

Banks are required to hold a certain amount of funds in their current accounts with the central bank. Why do they have to do this and how does it work?
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What is TARGET2?

… what is TARGET2?

29 June 2016

TARGET2 is a payment system owned and operated by the Eurosystem. But why is it important and how does it work?
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What is TLTRO-II?

… What is TLTRO-II?

24 June 2016

The second series of targeted longer-term refinancing operations is one of the ECB’s non-standard monetary policy tools. How do the new TLTROs help consumers, businesses and the economy, and what distinguishes them from usual refinancing operations?
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… about nominal and real interest rates

… about nominal and real interest rates

25 May 2016

What is the difference between nominal and real interest rates? And why does it matter?
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… about the quiet period

… about the quiet period

14 April 2016

Governing Council members observe a so-called quiet period before monetary policy meetings. What does this mean in practice?
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What is the deposit facility rate?

… what is the deposit facility rate?

10 March 2016

The deposit facility rate is one of the three interest rates the ECB sets every six weeks as part of its monetary policy.
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What is a central bank?

… what is a central bank?

10 July 2015

Is a central bank just another bank? What is the role of central banks in the economy and what is special about them?
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… about the ECB's accountability

10 July 2015

What does accountability mean for the ECB? How do we explain our actions to the public?
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… what is monetary policy?

10 July 2015

Why does monetary policy matter? Because it has a direct impact on interest rates and an indirect impact on inflation, the economy and employment.
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