It could also provide near unlimited liquidity through yet another huge long term refinancing operation.
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The reaction to take-up of the ECB's second long-term refinancing operation was fairly muted.
Examples of secured funding include covered bonds, repurchase agreements and the European Central Bank's Long-Term Refinancing Operation.
It is now unclear if the European Central Bank will roll out another round of its long-term refinancing operation (LTRO).
To fill their funding holes from fleeing deposits much of this borrowing has come from the Long Term Refinancing Operation or LTRO.
The big European Central Bank refinancing operation on Wednesday is feeding a more positive attitude in the market place late this week.
However, the Central Bank only pays interest on this liability at the Main Refinancing Operation (MRO) rate, which is currently only 0.75%.
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The European Central Bank is not expected to lower interest rates this week, but is expected to make overtures to the long-term refinancing operation, or LTRO.
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On the European Union sovereign debt crisis front, the big European Central Bank refinancing operation was very well subscribed Wednesday, with banks taking more funding than expected.
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The exception is the ECB's Long Term Refinancing Operation (LTRO), which provides banks with three-year liquidity at its main interest rate, currently 1%, against a wide array of collateral.
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And since the ECB started its long-term refinancing operation (LTRO) programme last November, they have been getting quite a lot of longer term funding from that source as well.
Meanwhile, financial markets have taken a more positive tone in recent weeks, noted Bank of America Merrill Lynch, largely on the effects of the European Central Bank's three-year long-term refinancing operation.
The momentum looks likely to continue, particularly because the ECB will conduct a second offering of three-year loans to banks, known as a long-term refinancing operation, or LTRO, at the end of February.
For example, the ECB has a deposit facility that pays interest to banks, an emergency marginal lending facility for overnight borrowing and a weekly refinancing operation in which it lends money to banks.
On the European Union sovereign debt crisis front, the big European Central Bank refinancing operation was very well subscribed Wednesday and the European bond markets are feeling the positive impact on Thursday, with generally lower yields.
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