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Bidding Behaviour In The ECB?s Main Refinancing Operations During The Financial Crisis

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Executive Summary

Liquidity provision through its repo auctions has been one of the main instruments of the European Central Bank (ECB) to address the recent tensions in financial markets since summer 2007. In this paper, the authors analyse banks' bidding behaviour in the ECB's Main Refinancing Operations (MROs) during the ongoing turmoil in money and financial markets. They employ a unique data set comprising repo auctions from March 2004 to October 2008 with bidding data from 877 counterparties.

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