at an auction of the central bank): A term that emerged around 2010 for banks that continuously, permanently draw on the central bank’s facilities because – they currently have no access to the interbank market and are therefore – as the jargon goes – “on the drip-feed of the central bank” or – transactions with the central bank are more favorably priced than those with partners in the interbank market. – In both cases, a problem arises, first, with regard to the creditworthiness of the institution constantly obtaining liquidity from the central bank and, second, with regard to the central bank’s interest rate policy.
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