In the issuance of securities, the excess of the sum of the amounts subscribed over the total amount offered; in this case, it usually causes rationing, a limited allocation. – The allocation of the central bank’s supply according to quotas in the event of excess demand. – When open market operations are concluded, banks’ bids often exceed the volume of allotments assessed by the central bank as being in line with demand. This makes a repo necessary. – In a fixed rate tender, the ECB allots all bids at a uniform repo rate (average allotment ratio: earmarked volume divided by the total amount of bids). In a variable rate tender, only the bids at the marginal allotment rate are repaired accordingly, while all bids above that rate are allotted in full. – See issue, oversubscribed, oversubscription, allotment procedure, American. – See ECB Monthly Bulletin, July 2000, p. 40 (explaining the procedure); Deutsche Bundesbank Monthly Bulletin, August 2009, p. 29 (repatriation rate of one hundred percent during the financial crisis).
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