ECB Expands Euro Liquidity Facility to Non-Euro Area Central Banks

The European Central Bank (ECB) is expanding its euro liquidity facility to non-euro area central banks, allowing them to borrow up to €50 billion against high-quality euro-denominated collateral.

The new facility, known as EUREP, will become available from the fourth quarter of 2026 and will provide a backstop to reduce the risk of euro funding pressures spilling into euro-area markets.

Banks participating in the facility must go through an onboarding process with the ECB, after which they can use EUREP funds flexibly without ex ante restrictions.