Lost in terminology? Key concepts in simple words.
What is the PEPP?
28 July 2021
The pandemic emergency purchase programme (PEPP) was introduced in March 2020 to counter the economic impact of the coronavirus crisis. It lowers borrowing costs and increases bank lending in the euro area to help people and businesses to weather the crisis. But how does it work?more
What are TLTROs?
30 March 2021
Targeted longer-term refinancing operations encourage banks to keep affordable credit flowing to people and businesses. This, in turn, supports spending and investment in the economy. But how do they work exactly?more
Who owns the ECB?
30 January 2020
All the countries in the EU own the ECB between them. This means they all contribute a certain amount to the ECB’s capital. But how do we calculate this amount?more
How you benefit from the euro
14 November 2018
As our currency, the euro has become an integral part of everyday life and it makes it easier for us to trade, travel, study, live and work abroad. But it’s much more than a convenient way of paying.more
What is the marginal lending facility rate?
13 September 2018
The ECB’s marginal lending facility offers overnight loans to banks. The interest rate charged on these loans is one of the three rates the ECB sets every six weeks.more
What is the main refinancing operations rate?
13 September 2018
The main refinancing operations rate is the interest rate banks pay when they borrow money from the ECB for one week. It is one of the three interest rates the ECB sets every six weeks.more
Why is cyber resilience important?
10 April 2018
Cyberattacks not only pose a threat to individuals or organisations but can also have broader consequences. Find out what the ECB does to promote cyber resilience and why we all need to be alert.more
What is bitcoin?
13 February 2018
Bitcoin is often called a virtual currency, but there are several reasons why it is not actually a currency. What are they? And why might you think twice before buying any?more
What is forward guidance?
15 December 2017
When the ECB gives forward guidance, we are providing information about our future monetary policy intentions. Why do we do this and how does it affect the economy at large?more
What are structural reforms?
18 October 2017
In the wake of the financial crisis, politicians and policymakers have often called for structural reforms to help lift economic growth. But what are structural reforms? And why does the ECB care about them if its mandate is to keep prices stable?more
What is seigniorage?
7 April 2017
The new €50 note is out and waiting for you in cash machines. But do you know how the central banks that issue the notes generate income as a result? Find out how seigniorage income works in the euro area.more
What is collateral?
2 November 2016
What is collateral and why do central banks require it?more
What are non-performing loans (NPLs)?
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?more
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?more
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?more
What is the difference between nominal and real interest rates?
25 May 2016
What is the difference between nominal and real interest rates? And why does it matter?more
What is 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?more
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.more
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?more
How is the ECB accountable for its actions?
10 July 2015
What does accountability mean for the ECB? How do we explain our actions to the public?more
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.more