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.

TLTRO III

The third TLTRO programme consists of a series of seven targeted longer-term refinancing operations, each with a maturity of two years, starting in September 2019 at a quarterly frequency. Borrowing rates in these operations can be as low as 10 basis points above the average deposit facility rate over the life of each operation.

Calendar

Reporting template

TLTRO II

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.

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
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 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