The ECB's targeted longer-term refinancing operations have increased bank lending to the private sector

Abstract

In recent years, the ECB has supported bank lending in the euro area by offering long-term financing to banks. The aim of the longer-term refinancing operations (LTROs), the most recent one in particular, was to encourage banks to increase lending to the private sector. LTROs have played a major part in the ECB’s unconventional monetary policy of recent years, and the latest series of operations appears to have increased bank lending to firms.