The European Central Bank published an expectation that Eurosystem counterparties should step up operational preparedness by voluntarily accessing the main refinancing operations (MROs) and/or the three-month longer-term refinancing operations (LTROs) at least once per year from 2026. The ECB framed the recommendation in the context of declining excess liquidity in the euro area, which has fallen from its end-2022 peak and is expected to continue decreasing as the Eurosystem balance sheet normalises. Testing is to be done with a bid amount at the counterparty’s discretion and against collateral in line with the Eurosystem general collateral framework, with the aim of supporting smooth monetary policy implementation, maintaining the operational framework and allowing firms to assess their readiness. Recommended modalities for regular testing are to be provided via the relevant national central banks.
European Central Bank 2025-12-19
European Central Bank calls on counterparties to test access to main and three-month refinancing operations at least annually from 2026
The European Central Bank (ECB) expects Eurosystem counterparties to enhance operational preparedness by voluntarily participating in main refinancing operations (MROs) and/or three-month longer-term refinancing operations (LTROs) annually from 2026. This recommendation arises amid declining excess liquidity in the euro area as the Eurosystem balance sheet normalises. Testing should be conducted at the counterparty's discretion with collateral in line with the Eurosystem general collateral framework to support smooth monetary policy implementation.