TLTRO (Targeted Longer-Term Refinancing Operations )

Targeted Longer-Term Refinancing Operations (TLTRO) is one of the “unconventional” monetary policy tools used by the European Central Bank (ECB).

Updated September 2019

Targeted Longer-Term Refinancing Operations (TLTRO) is one of the "unconventional" monetary policy tools used by the European Central Bank (ECB). The ECB agrees to lend money to commercial banks over a set period at a very low rate, on condition that they lend this money out into the "real" economy (by making loans to businesses, for example). The point is to give banks a cheap source of funding that they are encouraged to lend out, in order both to raise bank profit margins and to boost economic activity and growth.

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