European Central Bank
In contrast to the Fed, the ECB normally does not buy bonds outright. The normal procedure used by the ECB for manipulating the money supply has been via the so-called refinancing facilities. In these facilities, bonds are not purchased but used in reverse transactions: repurchase agreements, or collateralised loans. These two transactions are similar, i.e. bonds are used as collaterals for loans, the difference being of legal nature. In the repos the ownership of the collateral changes to the ECB until the loan is repaid.
What is the manner in which bonds are used at refinancing facilities?
repurchase agreements, or collateralised loans
In these facilities, bonds are not purchased but used in reverse transactions: repurchase agreements, or collateralised loans.
bonds