The Eurosystem’s operational framework for implementing monetary policy comprises the general rules for Eurosystem monetary policy instruments and procedures, by means of which the ECB Governing Council’s decisions on the implementation of monetary policy in the euro area are enacted in a decentralised manner. The Eurosystem’s monetary policy operations are executed under uniform terms and conditions in all Member States. The Bundesbank is responsible for conducting the Eurosystem’s monetary policy operations with German counterparties.

The operational framework consists of a set of monetary policy instruments. The Eurosystem conducts open market operations (primarily monetary policy refinancing operations), offers standing facilities and requires credit institutions to hold minimum reserves on accounts in the Eurosystem. Its operational framework is formulated with a view to ensuring the participation of a broad range of counterparties. Credit institutions subject to minimum reserve requirements may access the Eurosystem standing facilities and participate in Eurosystem open market operations based on standard tenders, provided they fulfil the eligibility criteria. In addition, the ECB Governing Council may also adopt non-standard monetary policy measures, which are then implemented alongside the other monetary policy instruments defined within the operational framework. The ECB Governing Council may, at any time, change the instruments, conditions, criteria and procedures for the execution of the aforementioned monetary policy operations.

Under the terms of Article 18.1 of the ESCB Statute, all Eurosystem credit operations (i.e. liquidity-providing monetary policy operations and intraday credit) have to be based on adequate collateral. The Eurosystem accepts a wide range of collateral for its operations and has compiled a single list of eligible collateral common to all Eurosystem credit operations.

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