Fixed rate tenders with full allotment  Before the summer 2007, the Eurosystem provided the bulk of liquidity through tender operations where banks bid a variable interest rate for a fixed amount of liquidity set by the ECB. Under this arrangement the Eurosystem ensures that on aggregate liquidity demand and supply are balanced.
CMU will also be key to supporting European growth by diversifying sources of funding and increasing companies’ access to financing. While the improved access to capital for small and medium-sized enterprises foreseen by the vision for Capital Markets Union is currently very much in the limelight, we should not forget that SMEs could also benefit substantially from more innovative retail payments services.