The European Central Bank adopted Decision ECB/2026/10 on March 26. It implements a policy change agreed on December 11, 2025. From June 17, the start of the fourth reserve maintenance period, excess reserves held by eligible monetary policy counterparties will earn the deposit facility rate. Excess reserves previously earned zero percent. The first payment under the new framework is due July 30.
End-of-day credit balances on TIPS Dedicated Cash Accounts count toward reserve requirement compliance. Any amount above the minimum reserve previously attracted no return. This created a funding cost for banks maintaining instant payment settlement liquidity. Under the new regime, excess reserves earn the deposit facility rate regardless of where they are held within TARGET Services.
The Eurosystem announced complementary TIPS liquidity measures on May 28 as part of its T2 operating hours review. Rule-based liquidity transfers will allow participants to set predefined floor and ceiling thresholds for automatic sweeps between Dedicated Cash Accounts and Main Cash Accounts. TIPS processed 10.83 million daily transactions across EUR, SEK, and DKK in April 2026. This was the first month multi-currency daily volumes exceeded 10 million.