Excess reserves are the amount of reserves held by banks at their central bank in excess of the reserve requirements. At present, a two-tier system (TTS) is applied for remunerating the excess reserves held by banks in their current account.
Currently, the remuneration of excess reserves is the lower of the 0% interest rate and the deposit facility rate. Temporarily, from 30 October 2019 until 8 September 2022, a two-tier system (TTS) was applied to the remuneration of excess reserves held by banks on their current account.