Marginal lending facility

a standing facility of the ECB which counterparties may use to obtain overnight credit at a pre-specified interest rate against eligible assets. – The interest rate on the marginal lending facility is generally the upper limit of the overnight rate. This is because no bank will borrow money at a higher interest rate than that at which it is serviced by the central bank. – See deposit facility, negative interest rate, undercutting, interest rate corridor. – See the annex “Statistics” of the euro area, section “Monetary statistics,” subheading “Key ECB interest rates” in the respective Monthly Bulletin of the ECB for the volume of operations, Monthly Bulletin of the Deutsche Bundesbank of April 2008, p. 25 (overview of the marginal lending rate 1999 to 2008).

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