Eurosystem operational framework changes and impact on Irish banks – Central Bank of Ireland Quarterly Bulletin article (centralbank.ie)

• ECB Governing Council announced a new demand-driven soft floor system in March 2024.
• Irish banks are expected to resort to standard refinancing operations later than other euro area banks.
• Excess liquidity in Ireland is declining more slowly than elsewhere.

"This Central Bank of Ireland Quarterly Bulletin article (December 2024) explains the evolution of the Eurosystem's monetary policy operational framework from a classic corridor to a de facto floor and, announced in March 2024, a demand-driven soft floor system. It details the design features, reasons for the review, and implications for Irish banks, which may experience a slower decline in excess liquidity, delaying their use of standard refinancing operations."