The standing facilities of borrowing and depositing enable credit institutions to borrow funds from or deposit funds with the Croatian National Bank at their own initiative, mostly at the end of the working day and with overnight maturity.
The Croatian National Bank enables the borrowing of funds through Lombard loans and the depositing of funds through the deposit facility. Loans are granted under certain conditions, which comprise the defined eligible collateral and an interest rate above the market interest rate. On the other hand, automatic depositing of funds with the central bank is remunerated at an interest rate below the market interest rate. In that way, central banks set an interest rate corridor within which money market interest rates should move.
- A Lombard loan is granted on the basis of a bank's request at the end of the working day
- An unpaid intraday loan is considered an application for a Lombard loan
- The loan may be used on a daily basis
- The loan has overnight maturity
- The interest rate is 2.50%
- The CNB may suspend the granting of Lombard loans in accordance with monetary policy goals and for prudential reasons and limit their amounts
- Counterparties may deposit surplus funds with the CNB at the end of the day
- The facility may be used on a daily basis
- The facility has overnight maturity
- The interest rate is 0.00%
- Deposit facility funds are not included in the calculation of reserve requirement maintenance