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Monetary policy glossary

tender procedure

A procedure in which the central bank provides liquidity to or withdraws liquidity from the market on the basis of bids submitted by counterparties in competition with each other. The most competitive bids are satisfied with priority until the total amount of liquidity to be provided or withdrawn by the central bank is exhausted. See also variable rate tender


See Treaty on the Functioning of the European Union (TFEU)

tier one asset

A marketable asset fulfilling certain uniform euro area-wide eligibility criteria specified by the ECB.

tier two asset

A marketable or non-marketable asset for which specific eligibility criteria are established by the national central banks, subject to ECB approval.


targeted longer-term refinancing operation

trade date

The date on which a trade (i.e. an agreement on a financial transaction between two counterparties) is struck. The trade date might coincide with the settlement date for the transaction (same-day settlement) or precede the settlement date by a specified number of business days (the settlement date is specified as T + the settlement lag). See also settlement date

transmission mechanism

See monetary policy transmission mechanism

Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (TSCG)

An intergovernmental treaty, which was signed in Brussels on 2 March 2012 and entered into force on 1 January 2013. It contains a “fiscal compact”, which complements and, in some areas, enhances key provisions of the Stability and Growth Pact. Among other things, this Treaty requires the Member States that have ratified it to enshrine a balanced budget in national law and increases the role of independent fiscal monitoring bodies. See also Stability and Growth Pact (SGP)

trigger point

A pre-specified level of the value of the liquidity provided at which a margin call is executed.


See Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (TSCG)