Excess reserves

Until mid‑2026, excess reserves over minimum reserve requirements were remunerated at 0 per cent when policy rates were positive, or at the deposit facility rate when they were negative. In a positive interest rate environment, credit institutions were incentivized to transfer excess reserves, at the end of the day, from their reserve accounts to the deposit facility in order to obtain higher remuneration.

In December 2025, the Governing Council decided to simplify this framework. As of 17 June 2026, excess reserves held by monetary policy counterparties with access to the deposit facility are always remunerated at the deposit facility rate. For all other institutions, remuneration remains unchanged: 0 per cent when policy rates are positive, or the deposit facility rate when they are negative.

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