Deposit facility (overnight money)

Counterparties may make overnight deposits at the Bank until the start of the next business day at the deposit facility rate. Applications for this purpose can be submitted on any business day up to a specified cut-off time using the TARGET2 communication channel. Applications by fax are now only accepted in the event of technical difficulties.

The deposit is due for repayment with the accrued interest at the beginning of the business day following the day on which the deposit was made; this amount is credited to the account from which it was debited.

Notes on overnight money

• Submissions must be made no later than 15 minutes after TARGET2 operations have ended, or within 30 minutes after TARGET2 has closed on the last business day of a minimum reserve maintenance period. If TARGET2 operating hours are extended, the cut-off time for accepting overnight money is extended accordingly.
• The business days for monetary policy operations are all TARGET2 business days. For a list of TARGET2 holidays, please refer to the right-hand column.

Marginal lending facility (overnight credit)

The Bank grants counterparties overnight credit until the start of the next business day at the marginal lending rate against collateralisation via the collateral account. Applications for overnight credit can be submitted on any business day up to a specified cut-off time using the standard communication channels. Under exceptional circumstances in the event of a technical problem, a request by fax using the corresponding form is also possible.

An overdraft existing at the end of a business day is deemed to be an application by the counterparty for overnight credit in the amount of the overdraft. A separate application is not required in this case.

The overnight credit is due for repayment with interest on the business day following the day on which it was drawn. The relevant total amount is debited to the counterparty’s TARGET2 reference account held with the Bundesbank.

Notes on the overnight credit

• Where an application for overnight credit is submitted by fax on an exceptional basis, submission is to be made to the Securities Settlement and Collateral Management Division at the Bundesbank’s Central Office in Frankfurt am Main by fax (+49 69 2388-2496). Applications are not confirmed in writing.
• Submissions must be made no later than 15 minutes after TARGET2 operations have ended, or within 30 minutes after TARGET2 has closed on the last business day of a reserve maintenance period. If TARGET2 operating hours are extended, the cut-off time for accepting overnight credit applications is extended accordingly.

The overnight credit is credited to the applicant's TARGET2 reference account held with the Bundesbank on the date (business day) when the application is submitted.