Open market operations are among the most important instruments in the central banks’ toolbox – and they help with municipal financing. We talk about the background to this financial policy with Harald Endres, Head of Treasury at Deutsche Kreditbank (DKB).

The basic principle behind the ECB’s open market policy is actually quite simple: to provide banks and credit institutions with liquidity at very good conditions. But if you look at the details, the whole thing is a little more complicated. There are refinancing tenders, volume tenders and interest rate tenders. What is it all about? And how do borrowers – including municipalities – ultimately benefit from this financial policy?

Together with Harald Endres, Head of Treasury at DKB, we take a look at the history of open market operations and what role they play, for example, in the Corona crisis:

Are you interested in the topic of municipal finance? Then you should also read this article.