Outright Monetary Transactions and Remote participant: Difference between pages

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imported>Doug Williamson
(Updated entry: Added link to European Central bank)
 
imported>Doug Williamson
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(OMT).
''Funds transfer''.
An institution established in one country (home country) which participates in a transfer system of another country (host country) without necessarily having established a branch in the host country.  


Part of the [[open market operations]] of a central bank in which the central bank buys or sells securities outright - i.e. without the re-sale or re-purchase legs of [[reverse repurchase agreement]]s or [[repurchase agreement]]s.


This was a new tool for the European Central Bank in 2012 - and controversial, especially in Germany - though its use by other banks has not been so dogged by controversy.
In the event that the remote participant has established a branch in the host country, it does not participate in the transfer system of the host country via this branch.




==See also==
== See also ==
* [[European Central Bank]]
* [[Branch]
* [[Institution]]
* [[Transfer]]
* [[Transfer system]]


[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 18:17, 13 March 2023

Funds transfer.

An institution established in one country (home country) which participates in a transfer system of another country (host country) without necessarily having established a branch in the host country.


In the event that the remote participant has established a branch in the host country, it does not participate in the transfer system of the host country via this branch.


See also

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