<P> Refinancing operations are conducted via an auction mechanism . The ECB specifies the amount of liquidity it wishes to auction (called the allotted amount) and asks banks for expressions of interest . In a fixed rate tender the ECB also specifies the interest rate at which it is willing to lend money; alternatively, in a variable rate tender the interest rate is not specified and banks bid against each other (subject to a minimum bid rate specified by the ECB) to access the available liquidity . </P> <P> MRO auctions are held on Mondays, with settlement (i.e., disbursal of the funds) occurring the following Wednesday . For example, at its auction on 6 October 2008, the ECB made available 250 million in EUR on 8 October at a minimum rate of 4.25% . It received 271 million in bids, and the allotted amount (250) was awarded at an average weighted rate of 4.99% . </P> <P> Since mid-October 2008, however, the ECB has been following a different procedure on a temporary basis, the fixed rate MRO with full allottment . In this case the ECB specifies the rate but not the amount of credit made available, and banks can request as much as they wish (subject as always to being able to provide sufficient collateral). This procedure was made necessary by the financial crisis of 2008 and is expected to end at some time in the future . </P> <P> Though the ECB's main refinancing operations (MRO) are from repo auctions with a (bi) weekly maturity and monthly maturation, Longer - Term Refinancing Operations (LTROs) are also issued, which traditionally mature after three months; since 2008, tenders are now offered for six months, 12 months and 36 months . </P>

What advantages do open market operations have over other monetary policy tools