Liquidity analysis
Central bank liquidity management means supplying to the market the amount of liquidity consistent with a desired level of short-term interest rates.
This is achieved through open market operations and requires analysis and forecasting of the liquidity situation in the euro area.
| Reserve maintenance period | 2024-10-23 to 2024-12-17 |
| Average reserve requirements | 163,232 |
| Figures as at | 2024-11-01 |
| Current account holdings | 178,360 |
| Use of the marginal lending facility | 0 |
| Use of the deposit facility | 2,925,215 |
| Net liquidity effect from Autonomous Factors and MonPol portfolios | -3,052,283 |
| Excess liquidity | 2,940,344 |
| Estimate on 2024-11-04 of average daily autonomous factors for the period 2024-11-04 to 2024-11-12: | 1,307,200 |
| Estimate on 2024-10-28 of average daily autonomous factors for the period 2024-10-28 to 2024-11-05: | 1,201,800 |
General information
The analysis of the liquidity conditions in the euro area starts with the Eurosystem balance sheet: Weekly financial statement
| Assets (liquidity supply) | Liabilities (liquidity needs) |
|---|---|
|
Open market operations* |
Current accounts |
|
Marginal lending facility |
Deposit facility |
|
Net liquidity effect from Autonomous Factors and SMP |
|
| * Outstanding amounts of liquidity provided under the various asset purchase programmes can be found on the Weekly Financial Statement of the Eurosystem as well as in the section Asset purchase programmes. | |
The liquidity needs of the banking system result from the minimum reserve requirements imposed on euro area credit institutions and from autonomous factors, which are normally beyond the direct control of the ECB. Such factors can be banknotes in circulation and government deposits with some national central banks. Additionally, banks may wish to hold reserves in addition to the minimum required reserves based on their own business preferences.
The ECB normally aims to satisfy the liquidity needs of the banking system via its open market operations.
Finally, eligible counterparties can access the Eurosystem's standing facilities with an overnight maturity.