29.8.2014 Official Journal of the European Union L 258/11 DECISION OF THE EUROPEAN CENTRAL BANK of 29 July 2014 on measures relating to targeted longer-term refinancing operations (ECB/2014/34) (2014/541/EU) THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK, Having regard to the Treaty on the Functioning of the European Union, and in particular the first indent of Article 127(2) thereof, Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particu- lar the first indent of Article 3.1, Article 12.1, the second indent of Article 18.1 and the second indent of Article 34.1 thereof, Having regard to Guideline ECB/2011/14 of 20 September 2011 on monetary policy instruments and procedures of the Eurosystem ('), Having regard to Guideline ECB/2013/4 of 20 March 2013 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral and amending Guideline ECB/2007/9 (%), Whereas: (1)  Pursuant to Article 18.1 of the Statute of the European System of Central Banks and of the European Central Bank, the European Central Bank (ECB) and the national central banks of Member States whose currency is the euro (hereinafter the ‘NCBs’) may conduct credit operations with credit institutions and other market participants, with lending being based on adequate collateral. (2)  On 5 June 2014, in pursuing its price stability mandate, the Governing Council decided to introduce measures to enhance the functioning of the monetary policy transmission mechanism by supporting lending to the real economy. One particular measure announced by the Governing Council in relation to this objective was its deci- sion to conduct a series of targeted longer-term refinancing operations (TLTROs) over a period of two years. In conducting TLTROs, the Governing Council aims to support bank lending to the non-financial private sector, meaning households and non-financial corporations, in Member States whose currency is the euro. This measure does not propose to deal with lending to households for the purposes of house purchases. Eligible lending to the non-financial private sector in the context of this measure thus excludes loans to households for the purpose of house purchases. (3)  In order to facilitate the participation of institutions that, for organisational reasons, borrow from the Eurosystem through the use of a group structure, it is envisaged that participation in TLTROs will be possible on a group basis where there is an institutional basis for group treatment. Group participation will be carried out through one specific group member and in accordance with prescribed conditions. Moreover, in order to address the issues related to the intra-group liquidity distribution, it is ensured that in the case of groups that are established on the basis of close links between members, all group members will have to confirm in a formal way in writing their participation in the group. (4)  Participants in TLTROs will be subject to borrowing limits. They will be entitled to an initial borrowing allowance in respect of the two TLTROs conducted in September and December 2014. The amount that may be borrowed in respect of this initial allowance will be determined on the basis of a participant’s total outstanding amount of eligible loans to the non-financial private sector on 30 April 2014. Regardless of whether they participated in the TLTROs conducted in 2014, participants will be entitled to additional borrowing allowances in respect of the () OJL331,14.12.2011,p. 1. () OJL95,5.4.2013,p.23.