Sentences with phrase «excess reserves parked»
The central bank announced that it will charge an interest rate of -0.1 % for excess reserves parked at the bank by financial institutions.
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It also left unchanged the 0.1 percent interest it charges to a portion of excess reserves that financial institutions park with the central bank.
The difficulty comes from the distribution of excess reserves within the system (banks borrowing at the TLTROs are not the same as those parking the liquidity at the ECB)[3].
These include paying banks to keep funds parked with the Fed (called «Interest On Excess Reserves») or though a different, more complex method of swapping Fed - held debt for bank cash holdings (called a «Reverse Repo» agreement).