Targeted longer-term refinancing operations (TLTROs)
What are the TLTROs?
The targeted longer-term refinancing operations (TLTROs) are Eurosystem operations that provide financing to credit institutions. By offering banks long-term funding at attractive conditions they preserve favourable borrowing conditions for banks and stimulate bank lending to the real economy.
The TLTROs, therefore, reinforce the ECB’s current accommodative monetary policy stance and strengthen the transmission of monetary policy by further incentivising bank lending to the real economy.
When were they launched?
A first series of TLTROs was announced on 5 June 2014, a second series (TLTRO II) on 10 March 2016 and a third series (TLTRO III) on 7 March 2019.
How do they work?
The TLTROs are targeted operations, as the amount that banks can borrow is linked to their loans to non-financial corporations and households.
In TLTRO III, similarly to TLTRO II, the interest rate to be applied is linked to the participating banks’ lending patterns. The more loans participating banks issue to non-financial corporations and households (except loans to households for house purchases), the more attractive the interest rate on their TLTRO III borrowings becomes.
The third TLTRO programme consists of a series of seven targeted longer-term refinancing operations, each with a maturity of three years, starting in September 2019 at a quarterly frequency. Borrowing rates in these operations can be as low as 50 basis points below the average interest rate on the deposit facility over the period from 24 June 2020 to 23 June 2021, and as low as the average interest rate on the deposit facility during the rest of the life of the respective TLTRO III.
- Decision ECB/2020/25 of 30 April 2020 amending Decision ECB/2019/21 introduces changes in the lending performance threshold, a new lending assessment period and changes in the interest rate to be applied to TLTRO III.
- Decision ECB/2020/13 of 16 March 2020 amending Decision ECB/2019/21 introduces changes in the borrowing allowance and the bid limits per operation to be applied to TLTRO III and allows an earlier repayment option after one year of settlement starting in September 2021.
- Decision ECB/2019/28 of 12 September 2019 amending Decision ECB/2019/21 introduces changes in the interest rate to be applied to TLTRO III and extends the maturity to three years with repayment option after two years.
- 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.
Calendar
Reporting template
- TLTRO III reporting template last update: 05 May 2020
FAQs
The second TLTRO programme consists of a series of four targeted longer-term refinancing operations, each with a maturity of four years, starting in June 2016 at a quarterly frequency. Borrowing rates in these operations can be as low as the interest rate on the deposit facility.
- Decision ECB/2019/22 of 22 July 2019 amending Decision ECB/2016/10 introduces a change to the notification period for voluntary early repayments of amounts borrowed under TLTRO II.
- Decision ECB/2016/30 of 31 October 2016 amending Decision ECB/2016/10 addresses an inconsistency in the deadline for lead institutions to apply for changes to TLTRO-II group composition.
- Decision ECB/2016/10 of 28 April 2016 on a second series of targeted longer-term refinancing operations defines the conditions for participation in TLTRO II and other operational aspects, published on 3 May 2016.
- ECB announces new series of targeted longer-term refinancing operations (TLTRO II), 10 March 2016
Calendar
- Indicative calendar for TLTRO II
- Indicative calendar for TLTRO-II voluntary early repayments as of June 2019, published 2 October 2019
Reporting template
Given that the methodological basis for TLTRO II remains unchanged from the first TLTRO series, the TLTRO reporting template and the example are also applicable for TLTRO II purposes.
- Decision ECB/2016/11 amending Decision ECB/2014/34 on measures relating to targeted longer-term refinancing operations (TLTROs) introducing an additional early repayment option for TLTROs in June 2016.
- Decision ECB/2015/5 of 10 February 2015 amending Decision ECB/2014/34 on measures relating to targeted longer-term refinancing operations
- Decision ECB/2014/34 of 29 July 2014 on measures relating to targeted longer-term refinancing operations
- Updated modalities of the targeted longer-term refinancing operations (as of 29 July 2014)(Chapter 6 "Dates and deadlines" is now superseded by the revised calendar for 2014, of 3 May 2016 below.)
Calendars
- Revised calendar for 2016, published 3 May 2016
- Revised calendar for 2015, published 3 May 2016
- Revised calendar for 2014, published 3 May 2016
- Revised table on indicative voluntary repayment settlement dates of TLTROs, published 3 May 2016
Reporting template
- 10 December 2020
- ECB prolongs support via targeted lending operations for banks that lend to the real economy. The Governing Council decided to extend the period of favourable interest rates, to launch three additional operations, to raise the borrowing allowance and to introduce a new lending assessment period.
- 30 April 2020
- ECB recalibrates targeted lending operations to further support the real economy. The Governing Council decided to modify the interest rate and the starting date of the lending assessment period to be applied to TLTRO III.
- 12 March 2020
- ECB announces easing of conditions for targeted longer-term refinancing operations (TLTRO III). The Governing Council decided to modify the interest rate, the lending performance threshold, the borrowing allowance and the bid limit per operation to be applied to TLTRO III and to allow an earlier repayment option after one year of settlement starting in September 2021.
- 12 September 2019
- ECB announces changes to new targeted longer term refinancing operations (TLTRO III). The Governing Council decided to modify the interest rate applicable to TLTRO III and the extension of the maturity to three years with repayment option after two years.
- 29 July 2019
- ECB publishes legal acts relating to targeted longer-term refinancing operations (TLTROs). Two documents relating to TLTRO III are made available with this press release: the indicative calendar and the reporting template.
- 6 June 2019
- ECB announces details of new targeted longer-term refinancing operations (TLTRO III) The Governing Council decided on key parameters of the new TLTRO III, including the interest rates that will be charged.
- 7 March 2019
- ECB announces a new series of targeted longer-term refinancing operations (TLTRO III).The Governing Council decided to conduct a series of seven targeted longer-term refinancing operations (TLTRO III), each with a maturity of two years, starting in September 2019 at a quarterly frequency.
- 3 May 2016
- ECB publishes legal acts relating to the second series of targeted longer-term refinancing operations (TLTRO II) Five documents relating to TLTROs and TLTRO II are made available with this press release: the revised calendars of TLTROs for the years 2014, 2015 and 2016, a revised table on indicative voluntary repayment settlement dates of TLTROs and the indicative calendar for TLTRO II.
- 10 Mar 2016
- ECB announces new series of targeted
longer-term refinancing operations (TLTRO II)
Monetary policy decisionsThe Governing Council decided to conduct a series of four targeted longer-term refinancing operations (TLTRO II), each with a maturity of four years, starting in June 2016. Borrowing conditions in these operations can be as low as the interest rate on the deposit facility.
- 22 Jan 2015
- The Governing Council decided to modify the interest rate applicable to future targeted longer-term refinancing operations, resulting in the amendment of Decision ECB/2014/34
- 29 Jul 2014
- Publication of Decision ECB/2014/34 on measures relating to targeted longer-term refinancing operations
- 3 Jul 2014
- The Governing Council decided on further technical details of the TLTROs
- 5 Jun 2014
- The Governing Council decided to conduct a series of targeted longer-term refinancing operations (TLTROs) aimed at improving bank lending to the euro area non-financial private sector, excluding loans to households for house purchase, over a window of two years