The operational framework of the ECB is very market oriented, i.e. it relies on tender procedures, leaving the initiative to banks, and lets automatic stabilisers, through the averaging provision in the reserve requirements system, work. While the ECB sets the framework and the rules, it is up to banks to best exploit the incentives set under this framework.
On this issue, let me add a few remarks on the increase in money market rates which has occurred over the past few days. These developments have occurred following the low amount of bids submitted in the main refinancing operation of 13 February.