Advanced Search
MyIDEAS: Login

Fixed- and Variable-Rate Tenders in the Management of Liquidity by the Eurosystem: Implications of the Recent Credit Crisis

Contents:

Author Info

  • Margarida Catalão-Lopes

    (CEG-IST, Instituto Superior Técnico, Technical University of Lisbon)

Abstract

Most liquidity-providing operations of the European Central Bank (ECB) have been conducted through variable-rate tenders. However, fixed rates were first employed in the main refinancing operations (MROs) and are still used in other liquidity management operations. In October 2008, the ECB decided to carry MROs again at a fixed rate. In a simple threestage game in which banks can obtain liquidity through the open-market operations of the ECB, through interbank transactions, or through “standing facilities,” this paper revisits the dilemma between fixed- and variable-rate procedures, with an emphasis on the scenarios that are particularly relevant under the recent credit crisis, namely collateral shortage, rationing in the interbank market, and non-acute estimation by the ECB of the system’s liquidity needs.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ijcb.org/journal/ijcb10q2a7.pdf
Download Restriction: no

File URL: http://www.ijcb.org/journal/ijcb10q2a7.htm
Download Restriction: no

Bibliographic Info

Article provided by International Journal of Central Banking in its journal International Journal of Central Banking.

Volume (Year): 6 (2010)
Issue (Month): 2 (June)
Pages: 199-230

as in new window
Handle: RePEc:ijc:ijcjou:y:2010:q:2:a:7

Contact details of provider:
Postal: Centralbahnplatz 2, CH - 4002 Basel
Phone: (41) 61 - 280 80 80
Fax: (41) 61 - 280 91 00
Email:
Web page: http://www.ijcb.org/
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ewerhart, Christian & Cassola, Nuno & Valla, Natacha, 2012. "Overbidding in fixed rate tenders: The role of exposure risk," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 539-549.
  2. Jakob Eberl & Christopher Weber, 2014. "ECB Collateral Criteria: A Narrative Database 2001–2013," Ifo Working Paper Series Ifo Working Paper No. 174, Ifo Institute for Economic Research at the University of Munich.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ijc:ijcjou:y:2010:q:2:a:7. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Timo Laurmaa).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.