Daily banking sector liquidity - explanatory notes
The total volume of excess liquidity of the banking sector. The CNB's aim is to withdraw this amount from circulation three times a week using its monetary operations. The amount of excess liquidity on the given day is affected by the CNB's previous monetary operations, payments made by CNB clients (particularly the Government) to banks and vice versa, currency in circulation, the minimum reserve requirement, etc.
Minimum repo rate
The lowest rate at which the repo tender bids were accepted on the given day.
Average repo rate
The weighted average of the rates at which bids in all repo tenders were satisfied on the given day. Each individual bid is satisfied at the bid rate using the American auction procedure.
Maximum repo rate
The highest rate at which the repo tender bids were at least partly satisfied on the given day.
The total volume of liquidity withdrawn by the CNB on the given day through its repo operations.
O/N deposits accepted
The total amount of deposits placed by banks with the CNB on the given day, maturing on the following business day. These deposits are remunerated at the current discount rate. The CNB does not provide collateral for these deposits. Every bank may place a deposit with the CNB.
Lombard credits provided
The total volume of Lombard credits provided to banks by the CNB on the given day, maturing on the following business day. These credits are remunerated at the current Lombard rate. The CNB requires securities as collateral for these credits. As this transaction is a reverse repo, the CNB provides Lombard credits only to banks with whom it has the repo agreement in place.
The CZEONIA reference interest rate (CZEch OverNight Index Average) is the volume-weighted average of the interest rates of all unsecured O/N deposits placed by reference banks on the interbank market. See Rules for the Calculation of the CZEONIA Reference Interest Rate (Pdf - 93 kB)
Trade volume of the CZEONIA index
The total volume of all unsecured O/N deposits placed by reference banks on the interbank market. See Rules for the Calculation of the CZEONIA Reference Interest Rate (Pdf - 93 kB)
Total bank reserves
The sum of all banks' balances on their payment system accounts at the CNB's Clearing Centre at the end of the accounting day (around 4.00 p.m.). Banks maintain such balances in order to meet their Minimum reserve requirements (Rules - Czech version).
Free bank reserves
The difference between the total bank reserves on the given day and the total prescribed volume of minimum reserves (Rules - Czech version) in the given period.
The volume of free reserves held by banks from the start of the maintenance period to the present. The total cumulative is therefore the sum total of all previous volumes of free reserves since the beginning of the maintenance period. The calculation includes also free reserves for Saturdays, Sundays and public holidays.
If the value is positive (i.e. the reserves held by banks in the given period were on average higher than required), the reserve holdings can be expected to be lower for the remainder of the maintenance period, thereby dissolving the total cumulative, since banks can average their reserve holdings over the maintenance period.
The forecast error is the difference between the predicted amount of liquidity in the banking sector and the actual volume of bank reserves on the given day. Liquidity forecast errors are caused by autonomous factors which the CNB is unable to affect or precisely predict (e.g. currency in circulation, unexpected payments by clients, etc.).