# deposit facility

- Canonical URL: https://www.gerhardmerk.de/deposit-facility
- Post ID: 604445
- Modified: 2026-08-25T14:45:16+00:00
- Language: en

## Definition

A deposit facility is a standing monetary-policy arrangement through which eligible counterparties place funds overnight with a central bank. The central bank pays interest on these deposits at a rate announced in advance, rather than negotiating the return for each transaction. In the Eurosystem, the facility is accessed through the relevant national central bank. It provides a formal mechanism for holding overnight balances with the central bank and is an important instrument in the operational framework for implementing monetary policy.

## Machine-readable

- Generator: Merk Knowledge 1.1.1