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 for periods of up to four years. They offer long-term funding at attractive conditions to banks in order to further ease private sector credit conditions 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 and a second series (TLTRO-II) on 10 March 2016.

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.

Moreover, in TLTRO-II the interest rate to be applied is linked to the participating banks’ lending patterns. The more loans that 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-II borrowings becomes.

TLTRO-II

The second series of the TLTRO programme consists 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.

Calendar

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.

TLTRO-I TLTRO - press releases
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 decisions

The 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