2011年-ECB欧洲央行_The_ECBs_non-standard_measures_-_impact_and_phasing-out_15页_438kb

ECB's Non-Standard Measures - Impact and Phasing-Out Summary

Core Content

The European Central Bank (ECB) introduced a series of non-standard monetary policy measures in response to the financial crisis between 2007 and 2011, in addition to lowering its key interest rates. These measures were aimed at maintaining the transmission mechanism of monetary policy, which was severely impaired during the crisis. The primary goals of these non-standard measures were to support bank funding conditions, thereby enhancing credit provision to the private sector, and to contain financial market contagion.

The ECB's non-standard measures were designed to be temporary and complementary to standard interest rate decisions. Their phasing-out was contingent upon the self-sustained normalization of the monetary policy transmission mechanism, ensuring that the ECB could adjust its monetary policy stance in response to risks to price stability over the medium term.

Main Impairments to the Transmission Mechanism

1. Interest Rate Channel: The financial crisis disrupted the smooth transmission of ECB's interest rate signals to short-term money market rates and longer-term rates, which are crucial for private sector decision-making.
2. Bank Lending Channel: Banks faced difficulties in accessing funding, leading to increased liquidity risk and a potential sharp contraction in credit supply.
3. Balance Sheet Channel: A significant decline in asset prices and creditworthiness of borrowers affected the balance sheets of banks and their lending capacity.
4. Risk-Taking Channel: The crisis caused a shift from excessive risk-taking to a complete unwillingness to take risks, which further impacted credit availability and market stability.

Key Non-Standard Measures

• Money Market-Based Measures:

  • Increased allotment amounts in main refinancing operations (MROs) to accommodate liquidity demands.
  • Extended the maturity of refinancing operations to 12 months (LTROs) to provide longer-term funding certainty.
  • Introduced fixed rate full-allotment tenders to reduce short-term interest rate volatility and stabilize the money market.
  • Expanded the list of eligible collateral to help banks access liquidity more effectively.
  • Conducted US dollar and Swiss franc liquidity-providing operations to support internationally active banks.

• Securities Market-Based Measures:

  • Asset purchases were used to offset market-wide asset value declines and prevent excessive loan rate increases.
  • Direct credit provision to the private sector was considered in cases where heterogeneity among banks and interbank market impairments were significant.

Effectiveness of Non-Standard Measures

• The non-standard measures were effective in stabilizing the financial system and ensuring the transmission of monetary policy.
• They helped maintain relatively normal functioning of the transmission mechanism, even during the crisis.
• Evidence from model-based assessments indicates that the measures contributed to preventing a disorderly deleveraging process and supported economic stability.
• The ECB's non-standard measures were successful in achieving their intended goals, as reflected in the decline of lending rates and the moderate contraction of lending volumes.

Phasing-Out Considerations

• The phasing-out of non-standard measures is independent of interest rate adjustments.
• It will be based on evidence of self-sustained improvements in the transmission mechanism.
• The ECB remains committed to its mandate of maintaining price stability, and non-standard measures will only be used when necessary to address impairments.
• Governments and regulators are expected to address remaining funding strains in specific regions and sectors.

Lessons Learned

• Non-standard measures can be effective when the transmission mechanism is impaired, and they should be tailored to the specific issues at hand.
• The remuneration of central bank reserves allows for more flexibility in liquidity management, reducing the need to reach the zero lower bound.
• The use of non-standard measures involves both benefits and costs, which must be carefully balanced.
• The ECB's experience with these measures has contributed to a better understanding of their role in exceptional economic conditions.

Conclusion

The ECB's non-standard measures played a crucial role in stabilizing the euro area financial system during the crisis. Their effectiveness was supported by empirical and model-based evidence, and their phasing-out is being carefully managed to ensure that the monetary policy stance remains appropriate for maintaining price stability. The ECB continues to monitor the transmission mechanism and is prepared to adjust its policy toolkit as needed.